O.C. Bankruptcy

Re “Merrill Lynch Says It Told Citron of Risk,” Jan. 11:

Merrill Lynch seems to be saying that the money spent by Orange Country to issue bonds marketed by Merrill Lynch was money controlled by former Treasurer Robert L. Citron, a seasoned professional. But the final decision to issue the bonds (and to buy the reverse repurchase agreements) should have been made by the Orange County Board of Supervisors. In fact, the supervisors did not actually consider and debate these transactions. What I believe to be a series of invalid approvals were obtained from the board by having these matters included on the consent calendar in violation of the board’s own rule that any item involving more that $500,000 must be an agenda item, and subject to board scrutiny.

If Merrill Lynch issued invalid bonds and other financial instruments, invalid because the proper legal procedures for the issuance of these bonds, etc., were not followed, Merrill Lynch faces a very large liability to the people to whom they sold the invalid securities. And if these securities are in fact invalid, the people of Orange County do not have to honor them.

ARTHUR SMITH

Laguna Beach

Citron’s ineptitude and mishandling of Orange County’s assets exemplify the arrogance that sets in when one holds public office for too long. The semi-permanence of his position created a feeling of invincibility and a comfort zone from which Citron could discount any and all criticism.

Surely he should be held accountable. Moreover, the supervisors, who spent more energy naming public places after themselves than overseeing Citron, should also be closely examined and appropriately punished.

One good thing should result from this disaster--term limits for all elected officials.

RAY UHLER

Irvine