Meltdown hobbles Minnesota colleges
The nation's financial crisis hit home for Minnesota colleges and universities this week when an investment fund used by several to pay short-term expenses said it would close and cut off nearly all access to cash. . . . .
News of the Short Term Fund's demise this week made Mike Sullivan, chief investment officer at the University of St. Thomas, feel like he had dodged a $40 million bullet.
That's the amount of St. Thomas' money he had tied up in the Short Term Fund until about 1 1/2 weeks ago when some troubling signs convinced him it was time to move the money into Treasury bills.
"It was a hunch I played, an absolute hunch," Sullivan said. "That's money we will be using over the next two to three months. That is money we'll be using to make payroll, pay bills. . . . This is a very, very big deal in higher education right now. What are colleges going to do to make payroll?"
Congratulations to Mike Sullivan and UST for being on top of the financial situation. Many weren't