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Banks pulled the funding after the developer, Arab Investments, failed to secure a major tenant.
Schools, water districts, cities and others lost $1.6 billion from the county investment pool when risky investments failed.
But the fund's strategy of holding a diversified portfolio of investments failed to offer the hoped-for protection: all risky securities tanked at once.
Virtually all pension funds had assumed returns would be better, leaving them underfunded when their investments failed to perform as expected.
When many of those investments failed at the same time, AIG effectively owed more in insurance payouts than it could afford, leading to a government bailout of the firm.
"They were clearly aware that the school districts could ill afford to bear the risk of catastrophic loss if these investments failed," Elaine C. Greenberg, who leads the S.E.C.'s enforcement efforts in municipal securities, said in a statement.
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In the future, public employees will be responsible for investing their own retirement money, and if their investments fail, the city's taxpayers will not have to step in.
But a sickening number of those investments fail.
Moreover, can the average public investor stomach losses that VCs incur when their investments fail?
They are also typically structured so that the banks are not responsible if the investments fail.
They often lose money on these risky businesses and need huge upside because their investments fail more often than succeed.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com