LOS ANGELES - A California assemblyman plans to introduce legislation next month that would law the kinds of high-risk investing tools that have gutted the Orange County investment pool and triggered an ongoing bankruptcy crisis.

The draft bill targets most types of derivatives and reverse repurchase agreements - both of which contributed greatly to the portfolio's early successes, but also to the devastating $1.5 billion loss reported last week.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.