Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Alabama county readies for biggest bankruptcy in US history
drudgereport.com/ ^ | 7/26/2011 | http://drudgereport.com/

Posted on 07/26/2011 11:52:51 AM PDT by dragnet2

click here to read article


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-62 next last
Jefferson County's bankruptcy filing would be nearly twice as large as the record one filed by Orange County, Calif., in 1994

Corrupt Government at all levels becomes unraveled....

1 posted on 07/26/2011 11:53:07 AM PDT by dragnet2
[ Post Reply | Private Reply | View Replies]

To: dragnet2

http://news.yahoo.com/ala-county-readies-possible-record-bankruptcy-155646239.html


2 posted on 07/26/2011 11:54:18 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dragnet2

This was only partially about corrupt politicians. The ultrascum bankers at JPMorgan Chase & Co. and Merrill Lynch who bribed theJeffCo politicos to float the bonds are very much to blame here...

This sad story started in 1997, it’s been discussed ad nauseam on FR and elsewhere online, and is the poster child case for regulatory reform in the muni bond market in the US.

http://www.bloomberg.com/apps/news?sid=amydMxdPh1fQ&pid=newsarchive


3 posted on 07/26/2011 11:58:38 AM PDT by JerseyHighlander
[ Post Reply | Private Reply | To 1 | View Replies]

To: dragnet2

Make that corrupt DEMOCRAT government.....


4 posted on 07/26/2011 11:58:41 AM PDT by Gopher Broke (Repeal Obamacare !!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gopher Broke

“Make that corrupt DEMOCRAT government.....”

Yep, yep. I remember when Larry Langford was a local newscaster. Then he had a “Dreamland”...


5 posted on 07/26/2011 12:01:45 PM PDT by nolongerademocrat ("Before you ask G-d for something, first thank G-d for what you already have." B'rachot 30b)
[ Post Reply | Private Reply | To 4 | View Replies]

To: dragnet2

A Black Democrat run city for over 4o+ years, if I recall.

The consept that “Elections have consequences”, is proven yet again


6 posted on 07/26/2011 12:03:11 PM PDT by tcrlaf (PREFRONTAL LOBOTOMISTS FOR OBAMA2012!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dragnet2
A federal court forced Jefferson County to begin a huge upgrade of its outdated and overwhelmed sewer system to meet federal clean-water standards in the '90s, and officials used bonds to finance the improvements. Acting at the suggestion of outside advisers in a series of deals that were later shown to be laced with bribes and influence-peddling, the county borrowed money for the project in a complex and risky series of transactions.


7 posted on 07/26/2011 12:04:52 PM PDT by TSgt (When in the Course of human events...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

Wow... Horrid spelling. Fingertip dyslexia, my apologies


8 posted on 07/26/2011 12:05:10 PM PDT by tcrlaf (PREFRONTAL LOBOTOMISTS FOR OBAMA2012!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: JerseyHighlander

this bankruptcy is good - jp morgan should be the one who loses money on this - as you said, they bribed and duped the govt officials into taking the deal and the money owed ballooned when the market tanked.

let jp morgan pay.


9 posted on 07/26/2011 12:07:16 PM PDT by rokkitapps ( Hearings on healthcare waivers NOW! (If you agree make this your tagline))
[ Post Reply | Private Reply | To 3 | View Replies]

To: tcrlaf

poor little corrupt pols...they just couldn’t help themselves.

they were entrapped!


10 posted on 07/26/2011 12:14:11 PM PDT by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
[ Post Reply | Private Reply | To 6 | View Replies]

To: rokkitapps

this bankruptcy is good - jp morgan should be the one who loses money on this


How is this bankruptcy good?

How jp morgan the one to lose money on this?

I doubt jp morgan holds any bonds issued by Jefferson County.


11 posted on 07/26/2011 12:14:51 PM PDT by Presbyterian Reporter
[ Post Reply | Private Reply | To 9 | View Replies]

To: tcrlaf

This is the county, not the city.

There were plenty of whites involved in the corruption, so I caution you with that broad brush.

Common denominator, IIRC was (D)

I live here and WANT OUT OF THIS COUNTY!


12 posted on 07/26/2011 12:15:25 PM PDT by del4hope
[ Post Reply | Private Reply | To 6 | View Replies]

To: All
Some call the Obama/Chris Dodd/Barney Frank financial reform bill “The Goldman Sachs Preservation Act of 2010”

Here's how G/S and the Wall Street predators operate.

=========================================

COMING TO A TOWN NEAR YOU Mother Jones magazine circa Feb 2007 reported on the activities of Mark Florian, Chief Operating Officer of Goldman Sachs' Municipal finance division. According to the report, Florian was traveling to statehouses across the US to convince state officials that selling state assets would be "mutually beneficial." One of the scams involved selling state roads, then monetizing them via bonding----which would make billions per year for G/S until the end of time.

=============================================

HOW'S THAT G/S BONDING WORKING OUT FOR YOUR TOWN? Jefferson County, Alabama decided to build an elaborate new sewer system with the help of out-of-state financial wizards with names like Bear Stearns, Lehman Brothers, Goldman Sachs and JP Morgan Chase. The result was a monstrous pile of borrowed money that the county used to build, in essence, the world's grandest toilet — "the Taj Mahal of sewer-treatment plants" is how one county worker put it.

Now Jefferson County is one of the most indebted municipal governments in US history, with a current debt of approximately $7,000 for each man, woman and child residing in the county. Two extremely controversial undertakings by the county account for the majority of this debt.

First was a massive overhaul of the county-owned sewer system, and second was a series of risky bond-swap agreements. Both have been scrutinized by federal prosecutors, with several former county officials convicted of bribery and corruption. In 1995, Jefferson County entered into a consent decree with the EPA regarding sewer overflows into the Cahaba River watershed.

A total of $3.2 billion of new construction was subsequently contracted, both to comply with the consent decree and to expand the system to newly-developing areas and increase the number of ratepayers financing the construction. Much of this work was awarded to inexperienced companies, many of which have since been convicted of bribery, along with several county officials.

A series of controversial interest rate swaps, initiated in 2002 and 2003 by former Commission President Larry Langford (removed as the mayor of Birmingham after his conviction, were intended to lower interest payments, but have, in fact, had the opposite effect, increasing the county's indebtedness to the point that officials have issued formal statements doubting the county's ability to meet its financial obligations. The bond swaps are at the center of an investigation by the SEC.

In late Feb 2008 Standard & Poor’s lowered the rating of Jefferson County bonds to “junk” status. In early March 2008, Moody's followed suit and indicated that it would also review the county's ability to meet other bond obligations.

On March 7, 2008, Jefferson County failed to post $184 million collateral as required under its sewer bond agreements, thereby moving into technical default.......it is likely the county would enter into bankruptcy, which would result in one of the larger municipal bankruptcies in American history.”

13 posted on 07/26/2011 12:15:38 PM PDT by Liz ( A taxpayer voting for Obama is like a chicken voting for Col Sanders.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: TSgt

Somewhere is the EPA in a Clinton adm????

The AL AG (a Jeff Sessions kind of AG) has set up something to represent the taxpayer, if I heard correctly this morning.


14 posted on 07/26/2011 12:18:00 PM PDT by del4hope
[ Post Reply | Private Reply | To 7 | View Replies]

To: dragnet2

Didn’t New York City go bankrupt in the 1970s? Cleveland? If they mean, “largest COUNTY” to go bankrupt, that’s a serious omission, and still misleading since New York City is comprised of five counties.


15 posted on 07/26/2011 12:20:46 PM PDT by dangus
[ Post Reply | Private Reply | To 1 | View Replies]

To: Presbyterian Reporter

the bankruptcy is good because the citizens of jefferson county should not be held responsible for corrupt politicians and banksters.


16 posted on 07/26/2011 12:21:27 PM PDT by rokkitapps ( Hearings on healthcare waivers NOW! (If you agree make this your tagline))
[ Post Reply | Private Reply | To 11 | View Replies]

To: del4hope
There were plenty of whites involved in the corruption, so I caution you with that broad brush.

Yep. Boss Hogg was a believable caricature for a reason.
17 posted on 07/26/2011 12:25:12 PM PDT by Buckeye McFrog
[ Post Reply | Private Reply | To 12 | View Replies]

To: rokkitapps

the bankruptcy is good because the citizens of jefferson county should not be held responsible for corrupt politicians and banksters.


So you are saying it is ok for the widows who bought the municipal bonds to carry the burden for the corrupt politicians elected by the citizens of Jefferson County?


18 posted on 07/26/2011 12:29:17 PM PDT by Presbyterian Reporter
[ Post Reply | Private Reply | To 16 | View Replies]

To: Presbyterian Reporter

I am not going to deny a statement you are putting into my mouth. The money isn’t there to pay these bonds. The county paid 3.2 billion for a 1.5 billion dollar job.

I don’t know who gets hurt when the bankruptcy comes, but bankruptcy is the best way out now. Do you live here?

These idiots are paying a lawyer $500 an hour to decide who gets paid. This lawyer wanted $80 million placed in one of his accounts. Sounds shady to me. Go bankruptcy.


19 posted on 07/26/2011 12:49:23 PM PDT by rokkitapps ( Hearings on healthcare waivers NOW! (If you agree make this your tagline))
[ Post Reply | Private Reply | To 18 | View Replies]

To: del4hope

We moved just in time. My well and septic system requires no politicians.


20 posted on 07/26/2011 12:58:14 PM PDT by mtnwmn (Liberalism leads to Socialism)
[ Post Reply | Private Reply | To 12 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-62 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson