PROVIDENCE – The U.S. Securities and Exchange Commission has opened an investigation related to Rhode Island’s bond offerings, according to General Treasurer Gina M. Raimondo who was notified Monday afternoon.
The SEC did not provide any further details, a news release Thursday said.
“I was not entirely surprised to receive the SEC’s call,” said Raimondo. “For months Rhode Island has been listed among several states with precarious finances. This challenging position is in part due to our significant and growing unfunded pension liability.”
“It is unacceptable to be on these lists. The first step to addressing these challenges is to be accurate about the numbers we are using and to not underestimate the magnitude of our problems,” she continued.
Raimondo signaled that whether the SEC proceeds with a full investigation or not, the state has already begun to work to improve its disclosures on bond issuances.
“The state needs to be able to access the bond market in the years to come on the most favorable terms possible. It is critical to present a complete picture of our finances to potential bond investors,” Raimondo said noting that earlier this week, she launched an extensive review of the Treasury, including a review of the bond disclosure practices.
