Global Warming on Free Republic here, here and here
Posted on 02/02/2018 6:39:03 AM PST by MarvinStinson
A free-market think tank is asking the Securities and Exchange Commission for an investigation into possible bond fraud by local and municipal governments that claim they will be harmed by climate change.
The Competitive Enterprise Institute (CEI) says a number of municipalities, most of them in California, are suing oil and gas companies for future damages because of climate change, and in doing so are often explicit in their forecasts of predicted sea-level rise and monetary damages.
However, when those same cities sell bonds to investors, they're being far more generic in their claims of future catastrophe.
"In their suits against oil and gas companies, California's cities and counties claim that there are clear risks from manmade climate change," CEI's General Counsel Sam Kazman said in a statement. "But when it comes to selling their municipal bonds to the public, they say just the opposite. This is hypocritical double-talk, and it may well violate federal law against securities fraud."
CEI cites a lawsuit against oil and gas giants including BP, Chevron, and Exxon in which the City of San Francisco claims they are expecting short-term costs of $500 million, and long-term costs of $5 billion as a result of climate change.
San Francisco's attorneys argue that, "By 2050, for example, a ‘100-year flood' in San Francisco is expected to occur on average once every year, and by 2100 to occur 92 times per year—or almost twice per week."
The sea level increase caused by climate change "threatens the safety and lives of San Francisco residents," according to the suit.
However, in a bond offering from earlier this year the city stated, "The City is unable to predict whether sea-level rise or other impacts of climate change or flooding from a major storm will occur, when they may occur, and if any such events occur, whether they will have a material adverse effect on the business operations or financial condition of the City and the local economy."
Potential damages to the city could harm the city's ability to repay the bonds, which might affect a person's willingness to invest.
"Investors across the country have relied upon the statements by these municipalities in choosing to invest in their bonds. They deserve accurate information as to the potential risks of their investments," CEI wrote in a letter to the SEC's Public Finance Abuse Unit requesting an investigation.
CEI says other California governments have done the same, such as the City of Oakland, Imperial Beach, and Marin and San Mateo counties.
But when it comes to selling their municipal bonds to the public, they say just the opposite. This is hypocritical double-talk, and it may well violate federal law against securities fraud.
Only the fly on the wall at the closed-door litigation discussions knows for sure.
Taxpayers may not be happy with the spending choices of the local city councils. /s
These leftist, irresponsible municipalities know that they will not be able to meet their bond payments and will use the worn-out liberal excuse of being a victim...suing big companies to cover their butts.
Hold them to their own standards.
But until Democrats are thrown into prison for decades the scam will go on.
Fantastic approach!
<><>(1) using long-term financing to cover day-to-day expenses,
<><>(2) using bond proceeds to pay pension obligations, and,
<><> (3) misappropriating returns from the interest rate swap portfolio (a sub rosa ATM for paying the citys day to day expenses).
The stench from Chicago's poplitical sleaze is permeating the putrid city hall air... starting w/ Obama's ex-COS Chi/Mayor Rahm Emanuel. ....and remember, these kingpins of Chicago criminal politics moved into DC with Chicago kingpin Barack Obama.
=================================================
ANALYSIS Bonding is eternal taxation----the insider deals bonding companies made w/ shady pols to get bonding business would tell a tale of greedy pols accumulating riches through massive govt corruption.If these bonding deals were effectuated by way of referendum at the ballot box----and misled investors into buying tax-fee muni bonds----the SEC would be interested.
EMAIL enforcement@sec.gov
Massive govt corruption might include forgery, falsification of official records, fraudulent state budget entries, tax evasion, illegal wire-transfers, misuse of public office.
Tax-exempt municipal bond investors (including public education bond investors)-- have legal grounds to sue if they were deceived about deceptive bond offerings. In many cases, bond issues are approved by voters---at the ballot box--so that voters may have also been misled WRT uses of fraudulent bond offerings.
Also culpable are:
<><> bonding companies underwriting possible fraudulent bond issues;
<><> banks holding possibly fraudulent bond proceeds;
<><> State/city's modus operandi in allocating tax-exempt bond proceeds,
<><> the sub rosa acceptance of bond proceeds.
<><> state/city vendors accepting possible fraudulent bond proceeds.
<><> publicly-funded state/city agencies advocating the uses of fraudulent bond proceeds.
===========================================
The SEC, FBI, banking overight agencies, and the IRS, would be interested in the activities of state/city entities WRT bonding.
EMAIL---FBI TIPS PAGE https://tips.fbi.gov
EMAIL--enforcement@SEC.gov
Contact the IRS Fraud Unit
EMAIL Banking oversight agencies
============================================
Taxpayers should find out which banks are facilitating this.
<><> Which banks are designated the official repositories of municipal tax dollars.
<><> Which banks are dispensing the ill-gotten proceeds....and to whom.
Why do I get this feeling that San Francisco is SOAKED in fraud, ethics violations, cronyism, and all manner of political trickery they can muster?
Because like Seattle and Olympia they are 100% Marxist in their politics they should really take down the American flag. These cities sure as hell don’t believe what it stands for.
Note to investors: Just knowing the arrogant political duplicity and hypocrisy of the deceits a city like San Francisco is willing to make, should warn any investor that there are unknown risks they are taking with such a municipality. If you can’t trust a municipality to be honest, then can you trust investing in their bonds? No.
Global Warming on Free Republic here, here and here
Busted!
I pretty certain the oil company lawyers appreciate this admission.
I did not know there were any rivers in San Francisco that could flood the city plus hasn’t the climate been warming since the last ice age. I have a map of SF showing how much of the waterfront is built on fill since the gold rush...
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.