Another state government has settled with Oppenheimer Funds over losses incurred last year because of the company's mismanagement of their 529 college savings program. According to the AP, New Mexico Attorney General Gary King has reached an agreement with firm that will return $67.3 million to the state, all of which will be distributed to program participants who lost savings because of Oppenheimer's Core Bond Fund's abysmal performance last year.

Of the six state programs affected by Oppenheimer's risky bets, two have recouped a majority of their losses (Oregon was first).  So can Illinois be far behind?  The state's Bright Start program lost $85 million last year thanks to the Core Bond Fund.  In late November, State Treasurer Alexi Giannoulias told a pool of reporters that he and Attorney General Lisa Madigan were "very, very close" to reaching their own settlement, hinting that it could be finalized within "weeks."  Stay tuned ...