For Immediate Release
Wednesday, 5 July 2000
NEW WAY TO INVEST SC’s MONEY
Columbia, SC – Today, South Carolina State Treasurer Grady L. Patterson, Jr., in a letter* to financial institutions statewide, announced his office is changing the way it invests state money. The letter explains BidSC, the Treasurer’s new program that utilizes new technology to distribute state CD deposits. BidSC is only the second program of its kind in the nation.
"On July 26th South Carolina is going to be on the cutting edge of investing public funds by offering $75 million in state CD deposits on-line," Mr. Patterson said. "BidSC will be a change in how we do business to the advantage of banks and our citizens. In the next month, BidSC is going to make state CD deposits more competitive, more efficient and it will allow us to obtain higher rates of return."
Currently, the State of South Carolina has $120 million in Certificates of Deposit with financial institutions around the state. Previously, the Treasurer’s Office chose the institutions for CD investments and set the rate of return (based on market averages). BidSC will place $75 million in 6 month CDs for auction each quarter. The starting bid can be no lower than the 6 month U.S. Treasury Bill.
"There are now 113 financial institutions eligible to bid on a minimum $100,000 and maximum of $5 million in public funds. The internet auction will last for thirty minutes, and the program will allow institutions to instantaneously see if they are ‘in the money’ and they can revise their bids accordingly," Mr. Patterson said. "It is a fast-paced thirty minutes and technology is the equalizer that will give small banks an even shot at state money.
"Every time we save money, or make more money for the state, it adds up and means that somewhere along the line the government does not have to raise taxes on the hard working people of South Carolina," Patterson concluded. "We have initiated a new day in the world of public finance – BidSC is a huge step toward making our office more efficient, accurate and responsive to the people we serve."
For more information contact:
David A. Adams, 803/734-0380
* See the letter following.
Attention CD Department:
With all of the technological advances rapidly taking hold we have made a comprehensive effort to update operations to make our office more efficient, accurate and responsive. I believe that we must adapt as quickly as possible to the many new opportunities that arise. With that in mind, it is my pleasure to introduce a great opportunity for your financial institution.
The State Treasurer’s Office is unveiling BidSC, a program designed to create a competitive environment for bank deposits that will benefit eligible South Carolina financial institutions. Two of our top priorities in the South Carolina Treasurer’s Office are to obtain higher rates of return on public money, and to serve state financial institutions by giving broader access to our deposits. BidSC meets our office’s higher standards for the investment of state CD monies.
BidSC is an on-line electronic bidding auction for South Carolina certificates of deposit. It will utilize Internet technology to allow instantaneous bidding on $75 million in state CD monies quarterly. BidSC will be a more efficient and effective way to allocate deposits to the advantage of all participants. The first auction will take place July 26, 2000 from 10:00 a.m. to 10:30 a.m.
South Carolina financial institutions can register to participate in BidSC’s first auction by simply visiting our web site at the BidSC Investment Auction Website. Our auction administrator, MuniAuction, will handle your registration and provide you with the numbers and passwords to participate in the first auction. MuniAuction will help our office conduct several training sessions – and, when you register, you can participate in trial auctions also.
Please look through the following information. My investment staff will be available at any time to assist you and ensure you are comfortable with the electronic bidding process (803/734-2102).
Thank you for your interest, and your participation in BidSC. We are entering a new day in the world of public finance. We hope you will join us.
Sincerely,
Grady L. Patterson, Jr.
South Carolina State Treasurer