For Immediate Release
Thursday, 26 October 2000

Columbia, SC – State Treasurer Grady L. Patterson, Jr. held South Carolina’s second ever Internet Auction of state deposits, today. "Like South Carolina football, BidSC completely surpassed all expectations, and everyone will benefit," Mr. Patterson said. "More South Carolina banks participated, more bids were placed, and more interest will be earned than ever before."

The first of the quarterly Internet auctions was held in July. "We found a way to take advantage of new technology to better distribute state funds. Now, banks can get the money they need when they need it to better serve their community, and BidSC gets the state better returns on those investments," State Treasurer Patterson noted.

"Today, we almost doubled the returns from our first auction," continued Mr. Patterson.

"In just thirty minutes, the State of South Carolina got $2.44 million in interest earnings. That is $197,167.02 more than the average rate," Mr. Patterson remarked. "In the last sale, we garnered an extra $106,000.00. That’s a significant improvement."

Mr. Patterson believes the jump in earnings on the $75 million in CDs offered today reflected more institutions’ familiarity with the program. "We’re only the second state in the nation to auction funds on-line – pretty soon most states will be doing it – but the financial institutions are just learning how to take advantage of this great opportunity. By the next auction I think they will be even more comfortable with BidSC, and we will realize even greater returns."

State Treasurer Patterson concluded: "BidSC has brought South Carolina over $300,000.00 so far by harnessing new technology, some financial common sense, and utilizing market forces and philosophies. This is a huge step forward in public finance and, from the looks of it, BidSC is only going to get better."

Final bids can be viewed at the BidSC investment auction Website by clicking on "results". 132 total bids were received and 56 were "in the money". Seventeen (17) bids from the Midlands, fourteen (14) bids from the Lowcountry, thirteen (13) bids from the Upstate, and twelve (12) bids from the Pee Dee were accepted.

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For more information, contact:
David A. Adams, 803/734-0380