Michael Stamenson

If this was supposed to be a practical joke, state lawmakers just didn't get it. Legislators were grumbling Wednesday after efforts to issue a subpoena earlier in the week to Michael Stamenson, a Merrill Lynch & Co. broker linked to Orange County's financial woes, were briefly sidetracked when one of the company's top public relations officials pretended to be the long-sought investment banker. Paul W.

If this was supposed to be a practical joke, state lawmakers just didn't get it. Legislators were grumbling Wednesday after efforts to issue a subpoena earlier in the week to Michael Stamenson, a Merrill Lynch & Co. broker linked to Orange County's financial woes, were briefly sidetracked when one of the company's top public relations officials pretended to be the long-sought investment banker. Paul W.

A key adviser for Orange County's multibillion-dollar investment portfolio is a veteran San Francisco-based broker with a reputation as an aggressive trader--sometimes too aggressive for his municipal clients. Broker Michael Stamenson of Merrill Lynch & Co. has repeatedly declined requests for an interview after Orange County announced last Thursday that its bond portfolio had dropped $1.5 billion in value, to $18.5 billion.

There's no Ollie North and it's unlikely to involve the high drama of Iran-Contra, but in matters of municipal finance this promises to be big, and steeped in intrigue. A special state Senate committee will hold a daylong session here Tuesday that will bring together for the first time the key players in Orange County's financial debacle. The indisputable headliner is Robert L.

A trio of wealthy Merrill Lynch bond brokers, operating out of a pink marble office tower in the heart of this city's upscale financial district, became Orange County's main conduit for high-risk investments. Orange County Treasurer-Tax Collector Robert L. Citron was self-assured and outspoken in his investment strategy, but Merrill Lynch's team was ready to back Citron's every instinct and earn multimillion-dollar fees in the process.

There's no Ollie North and it's unlikely to involve the high drama of Iran-Contra, but in matters of municipal finance this promises to be big, and steeped in intrigue. A special state Senate committee will hold a daylong session here Tuesday that will bring together for the first time the key players in Orange County's financial debacle. The indisputable headliner is Robert L.

Key Figures in Bond Crisis to Testify: Former Orange County Treasurer and Tax Collector Robert L. Citron is expected to make his first public comments about the collapse of the investment pool he managed when he testifies Tuesday before a special legislative committee in Sacramento looking into the county's fiscal fiasco. Citron, 69, has remained virtually secluded in his Santa Ana home since he resigned Dec.

* Robert L. Citron: Once considered by many to be a financial genius, the former longtime county treasurer was the only public official to admit any guilt in the county's bankruptcy. He pleaded guilty to six felony counts of securities fraud and misappropriation of interest, diverting the money from the investment pool he managed into the county treasury.

Orange County officials--including former Treasurer-Tax Collector Robert L. Citron--will appear at today's hearing before the state Senate Special Committee on Local Government Investments. Here's the schedule of topics and speakers: 9-9:15 a.m.--Opening Statements * Sen. Lucy Killea (I-San Diego) * Sen. William A. Craven (R-Oceanside) 9:15-11 a.m.--Orange County Treasurer's Practices * Robert L.

Re "Go Slow on Merrill Lynch Ties," Editorial, July 7: It was my dear friend Steve de Graaf who drove from Los Angeles County immediately after I lost the election to former Orange County Treasurer-Tax Collector Robert L. Citron and gave me this advice: "Be better, not bitter." The Orange County bankruptcy occurred as the result of a large group of well-meaning people that failed to see the red flags because their eyes were closed. Many have moved on to such jobs as executive director of the Orange County Business Council and the head of the Peace Corps.

A trio of wealthy Merrill Lynch bond brokers, operating out of a pink marble office tower in the heart of this city's upscale financial district, became Orange County's main conduit for high-risk investments. Orange County Treasurer-Tax Collector Robert L. Citron was self-assured and outspoken in his investment strategy, but Merrill Lynch's team was ready to back Citron's every instinct and earn multimillion-dollar fees in the process.

A key adviser for Orange County's multibillion-dollar investment portfolio is a veteran San Francisco-based broker with a reputation as an aggressive trader--sometimes too aggressive for his municipal clients. Broker Michael Stamenson of Merrill Lynch & Co. has repeatedly declined requests for an interview after Orange County announced last Thursday that its bond portfolio had dropped $1.5 billion in value, to $18.5 billion.

Orange County's disastrous bankruptcy produced its share of colorful characters, including former Treasurer-Tax Collector Robert L. Citron, who dabbled in arcane financial instruments and consulted an astrologer, and the institutional broker who sold him securities, Michael Stamenson. There was also the charismatic William J. Popejoy, banker turned recovery czar.

"W hat I am, ladies and gentlemen, is a salesman. I am it. I am the cutting edge. When they talk about Merrill Lynch and our strengths, they talk about a lot of things. But what is the first thing they talk about? What do they say about us that is really great?" Uh, I give up. Not that the answer matters much to Orange County, which bought into bravado like that and rode it right over the financial cliff in December 1994.