Wednesday, July 15, 2015

Money Lost

  • Investment banks this spring paid $2 million to the city of Houston to settle claims they did not sufficiently warn city officials about the risks of the auction-rate bond market — the latest in a series of awards to governments damaged by auction-rate losses.

    No such award is coming to the Chicago Public Schools, even though CPS issued more auction-rate securities than any other school district in the country and more than most major cities. CPS did not file a claim with the relevant arbitration panel during its six-year eligibility period, a time span that included several years of Mayor Rahm Emanuel's tenure.

    It's not clear why the cash-strapped district decided not to pursue a claim — or even whether there was a decision at all. Under questioning from the Tribune, school officials acknowledged that they don't know whether CPS ever explored the option of filing a claim over its auction-rate losses. A Tribune series last year estimated those losses at roughly $100 million over the life of the deals.
Didn't Rahm make his pile in investment banks? Shouldn't he have had an inkling about this potential $100 million recovery of funds? You know, old contacts keeping him in-the-loop on certain facets of the industry and all that?

But you can bet that taxes will go up by many hundreds of millions shortly.



Anonymous Anonymous said...

It's not like it's our money. It's the guv'mints money.

7/15/2015 01:11:00 AM  
Anonymous Anonymous said...

Of course taxes must go up. The tax payers have the money the city and schools need in their pockets. It just needs for taxes to be raised so that money can be gotten to.

7/15/2015 01:47:00 AM  
Blogger SpankDaddy said...

Rahm was handed his millions as a favor by Clinton's people. I don't think he could balance his checkbook.

7/15/2015 06:46:00 AM  
Anonymous Anonymous said...

Another case of selling out of the City to save money for the big shot investment guys. Daley made hundreds of millions for connected law firms to cook up the lease arrangement for those parking meters at the expense of City getting screwed. Billions more went to the parking meter company while Chicago got peanuts in one paltry up front payment. Like pimping out your children. I've seen that done before in this stinking city. Daley steals billions and the prick lawyers can't even get him into court to answer questions.

Krislov if the only one to try and get those parking meters back for the City, filing suit, only to have Rahm pull the rug out from under him saying, "Oh no, we don't want them back, they leased it fair and square, they deserve to make billions" while the city got $1.3 billion plus has to keep on paying millions whenever parking meter spots are taken out of service to repair it's own streets etc. Crooked rotten bastards. And Rahm claims we need "pension reform?" Crooked rotten bastards. They will have to screw these bastards into the ground when they die.

7/15/2015 08:30:00 AM  
Blogger john said...

This happened with our pension fund. Other funds sued after the derivatives they purchased (CDS_CDO and the like) blew up. I asked someone on the pension board about getting some $$$ back if we sued. He stated he did not think we would. This was in 2009. A typical do not make waves guy. Lost about 100 million on those derivatives.

old retired guy

7/15/2015 09:10:00 AM  
Anonymous Anonymous said...

Oh, Rahm was well aware. The CTU repeatedly asked his Board of Education to look into this, but I guess they didn't want their fellow bankers to lose any money.

7/15/2015 11:56:00 AM  
Anonymous Anonymous said...

What exactly do board members do to earn their six figure salaries? Besides back Rahm?

7/15/2015 12:13:00 PM  
Anonymous Anonymous said...

Wall Street fucked the State of Alabama with their swap square dance crap and the State of Alabama sued and won.

I'd like to know what is different with the deals Wall Street concocted for IL.

Don't expect Rahm to be working for IL, he's a 1 percenter.

On another topic it's amazing how Gov. Walker in Wisconsin has turned that state around after decades of Democrat and Union fleecing of the taxpayers. Walker saw a clear choice, kow-tow to the unions and have mass lay-offs of middle-class working people so that a corrupt, innefficent union caste system can continue or eliminate collective bargaining of public employees, except for Police & Fire and use the savings and productivity efficiencies that come with that to keep people employed and return the power of the purse to the people and bring solvency to the government.

IL is doing what the WI unions wanted to maintain in WI, the status quo, and we are circling the drain because of it.

Some have posted on SCC that the unions are responsible for the living wage workers now receive. Sixty years ago that is true. But because of public employee collective barganing and a calculus of insider pensions, screwy work rules and other productivity indfficiencies because of the unions, the working man and citizenry is screwed and its killing the State.

And, no, it is not -- just -- the unions. It's politicians in bed with the unions and crony capitalists.

7/15/2015 05:26:00 PM  
Anonymous Anonymous said...

You know, perhaps the Sun-Times should investigate under the FOIA how much the Pension Board Attorney, David Kugeler, et al has been paid since he's been the attorney of record at the Pension Fund for a million years. Let's find out how much of our money paid him and his law firm over the years fighting injured officers from getting disability!

7/15/2015 07:56:00 PM  
Anonymous Anonymous said...

Old rahmys bonus money would have been tak n back as a fine if a claim went through. Not good for him personally. A tiny country ngoni the of interest though.

7/16/2015 09:52:00 AM  

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