Lawsuit delays sale of $10 billion in state bonds
The sale of $10 billion in short-term bonds is on hold because of a lawsuit over the sale of 11 state properties. The state plans to sell and lease back 11 office properties for a short-term savings of about $1.2 billion. But a lawsuit challenging the sale was filed in San Francisco Superior Court on Tuesday.
If the lawsuit is successful, that could change the state's budget picture. Treasurer Bill Lockyer is required to disclose any potential risks to Wall Street investors before the bond sale.
Tom Petruno has more details in the Money & Company blog.
-- Anthony York in Sacramento