UVM’s assets frozen but operations to continue as normal

Wachovia Bank limited the University of Vermont’s access to $79 million in short-term investments on Monday, freezing nearly 90 percent of the funds in order to prevent over-withdrawal by worried investors.In a letter to the University community Wednesday, UVM President Daniel Fogel offered a brief overview of the situation and offered assurance that UVM’s financial operations would not be impeded by the situation. “UVM will be able to meet its near-term cash flow needs,” said Fogel in his statement, adding that the administration is working to secure the University’s finances in secure accounts. Ten percent of UVM’s assets under the control of the Commonfund, which has invested money from over 1,000 institutions of higher learning into Wachovia’s short-term fund, were made available after the announcement. UVM immediately withdrew the entirety of the 10 percent and will continue to withdraw the maximum as more funds are made available, according to UVM Vice President of Finance and Administration, Richard Cate.The University’s situation is “stable,” according to Cate, who confirmed that University operations are expected to continue as normal into the near future.