Oregon Public Broadcasting

Oregon lawmakers plan Friday to grill key players behind the state’s troubled college savings investment plan.

It comes a day after the board that oversees the plan voted to dump an investment firm responsible for many of the losses.  Salem Correspondent Chris Lehman reports.

Some parents saw their portfolio lose more than a third of its value.  Much of the attention has turned towards funds managed by a New York-based investment firm called OppenheimerFunds, Incorporated.  

The President of that fund is set to appear in Salem before the House Education Committee.  The chair of that committee, Democratic Representative Sara Gelser, says she wants answers.

Sara Gelser:  “Why was there an investment in mortgage-backed securities?  And I’m also curious about who makes money on these things when they move forward, and as Oregonians have lost money in the plan has everyone lost money or is there anyone that’s making money off of it.”

Oregon Attorney General John Kroger’s office is investigating whether Oppenheimer misrepresented how safe their funds were.

The Oregon College Savings Board has had enough.  It’s decided to pull the state’s money out of Oppenheimer’s control.