How your city blindly gave Wall Street millions through trading.

[promagma]

“The school-board official knew they were getting $750,000 for entering into a ‘swaption’ with J.P. Morgan Chase & Co. They wanted to know what was in it for the bank. They wanted to know the price. They seem like reasonable requests. ‘I can’t quantify that to you,’ the banker told them. ‘It is not a typical underwriting and I can’t quantify that for you and there’s no way that I can be specific on that.’

Seriously ..... if they say that, maybe .... don't sign?

In the swap version, the bank offers, for a handsome charge, to pay a variable fee to the issuer of the bonds. The idea was that the money could be used to make payments owed to the bond buyers. Payments were supposed to vary with the course of interest rates. The contrivances were heralded as protecting issuers against a rise in rates and saving them money on their payments.

So for a fee, you are are protected against interest rate changes, and you *know* what the payments will be for years to come. And you run out of money ..... oops. Evil banks, lol.

 

[Stok]

Quote from Bob111:

can anyone explain to me a purpose of public sector unions? what they unite against? looks like against us, the taxpayers,guys who pays their salaries. how is this even possible that they have unions?

i just don't get it..

It is against the taxpayer, but it is more of a slush fund the democrats latched onto 60 years ago. "You scratch my back, I'll give you what you want". It basically has been uncovered for decades. Now, the fraud is being exposed.

Even good ole democrat JFK warned about it - public sector unions in bed with democrats and bargaining rights. It is awful!

So, yes, as the Country of tax payers begins to wake up...they will realize their neighbors are at war with them.

 

[Bob111]

Quote from sprstpd:

I love how this article blames Wall Street when the cities didn't even understand the contracts they were entering in. Who signs contracts that they don't understand except for total idiots? Blame goes to both sides.

i'm pretty sure that they just didn't signed blindfold or because they are dumb..there is should be whole lot of investigations and FBI should be more concentrated not of fucking bogus terrorists,but on those fucks who accept that shit from WS. cause this crap doesn't smell good..i would look into some unexpected purchases\vacations etc taken without any changes on those officials banks accounts. very simple, good starting point. all that under our very favored patriot act. and if they found guilty-threat them as a domestic terrorists.yes...just like that. send them to Guantanamo and do some water-boarding..then and ONLY THEN maybe it would stop the others to do same. cause they should be scared.. and fuck the public unions same way..very simple.