Porter County loans to Lake County schools and municipalities are, we're told, “shaping up to be a profitable investment move." Really?
Just because a school or municipality has not defaulted on a loan for 20 years prior and works with a financial specialist does not make it a good loan. It might default or might not follow recommendations of its financial specialist.
Is investing $63.3 million of its $173 million assets in such a small number of loans ever prudent?
Reported Lake County financial problems raise reasonable concerns. Relying on state minimum requirements is not a substitute for sound investment underwriting.
I do not know whether these are safe investments. I do know, however, that Porter County residents are owed a much better explanation.
The Times should ask more questions before pronouncing the loans as a profitable investment move.
- Richard C. Wathen, CPA, Valparaiso