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HomeBillions in Municipal Losses Later…Sorry
Posted by Larry Doyle on March 25th, 2009 8:03 PM |
The municipal bond sector has always been conducive to a “pay to play” mentality. Picture a municipal executive, compensated in a high 5 figure range, making a decision on a multi-million dollar bond transaction in which Wall Street underwriters were generating millions in fees. If that scenario is not ripe for abuse, I don’t know what is. The “pay to play” game has been going on for years in municipal finance.
Well, with the launch and growth in municipal derivatives, it appears that the “games” likely continued. Wall Street firms certainly booked huge profits. Municipal executives very likely received under the table payments. Taxpayers got screwed. (more…)
