Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investment Account Texas Class topic
No spam. Unsubscribe anytime.
EDC reviews higher-yield Texas CLASS account use for reserves
Summary
Council members discussed the EDC’s use of a Texas CLASS (referred to as MBIA in the packet) account to earn higher interest on reserves; staff said the pooled account pays daily interest around 3% and requires pledged securities for amounts above FDIC limits.
The White House Economic Development Council reviewed Aug. 21 how it uses a Texas CLASS pooled account (listed as MBIA in the packet) to earn higher interest on reserves. Leslie (Finance staff) explained the MBIA label in the packet refers to the Texas CLASS investment vehicle and said the account pays interest daily at a higher rate than local bank accounts. Leslie described the practice of moving funds that exceed certain thresholds into the higher-yield account to earn more interest while ensuring pledged securities cover amounts above FDIC insurance limits. Council members asked whether the account insures risky projects; staff said the account requires pledged securities and is not a guarantee for risky projects. One member noted current yields are around 3 percent. Staff said funds in the account remain available for planned projects such as property purchases or development-related spending when the council decides to deploy them. No expenditure or transfer was authorized in the meeting; the item was informational and intended to clarify cash management strategy for council members.
