Orange County first revealed its intention to borrow up to $320 million from the county treasury to pre-pay ballooning pension and retiree benefits in a Bloomberg interview on January 27, 2011. Moorlach, Chairman of the Board of Supervisors and former treasurer stated: “When you think of the concept of borrowing from ourselves, we ask, ‘Why not?’… “Who’s a better credit than yourself?” But Moorlach had inside information that the county only had half the total cash and only 13% of the liquidity necessary for the county to secure the transaction alone. He knew that if the county wanted to do a big deal, they would need to use the cash that local schools and other governmental agencies had deposited into the county treasury and under control of the treasurer. Despite known concerns about safety and liquidity risks, the Orange County Treasurer bought $287,872,000 of unsecured Pension Obligation Bonds yielding just 1.82%. SEC filings now confirm that Orange County made $15.1 million profit on this deal with their Treasurer.