Laura Steffler From: Liza Carberry Sent: Thursday, August 07, 2008 10:20 AM Subject: RE: Moving SIV's from LGIP to Idle in Securities Lending Portfolios I will take care of it i think it makes sense to make the move. We will keep you posted. Liza From: Ron Crane Sent: Thursday, August 02, 2008 10:01 AM To: Liza Carberry Subject: R_E_:_Moving SIV's from LGIP to Idle in Securities Lending .4 Thank you for the update. I will follow your lead on this one as it is too technical for me. However, I do think that our rating with 8843 is more important than any investment vehicle we are using . . . so if they suggesting a change the move) then it is probably a good idea to follow their suggestion. Thanks . Ron .. . -- I, From: Liza Carberry gel-3E. Wed arsizooa 1:53 PM To: Row Cc: Shawn Nydegger Subject: Moving from LGIP to Idle in Securities Lending Portfolios Ron, Shawn and I followed up on Peter Rizzo?s suggestion to move the SIV investments from LGIP securities lending to IDLE by contacting the LED auditor and also by talking to Bill Allen with Key Bank. The current holdings of SIV in LGIP are: $30,000,000 Stanford Victoria $17,000,000 Liberty 8,200,000 Cheyne Finance Total $55,200,000 in a portfolio with holdings at $1,540,000,000 (around 3.58% of the portfolio). First I contacted the auditors at LSO and posed the question hypothetically (as if someone else was asking me this question for their purposes i.e. a municipality). They responded that there are no GASB requirements or guidelines on this matter but thought the outright buy and sale had a better document trail. Shawn and I also discussed this with Bill Allen at Key Bank who ?irther discussed it with their legal team and they seems to think it is okay - that in fact many regulators are asking the big banks to do this very thing which is probably what prompted dc to recommend it to us. I am comfortable whichever way you would like to proceed. Please advise me via this email to have Bill move those listed securities above to Idle portfolio or not move them. I am as always available for any questions you might have. Liza PS We have requested that First Northwest Bank collateralize our $27,000,000 money market investment with them and have talked to American Beacon about them either getting a rating from or moving our funds to a true 237 money market with them. I think these changes should make 100% comfortable. Liza Carberry Investment Manager Idaho State Treasurer's Of?ce 304 N. 8th Street Boise, Idaho 83702 Of?ce Phone 208 332-2997 Fax Number 208 332-2961 Cell Phone 208 283-8134