There is no mention of the EPA's possible litigation and/or fines against the City in the bond prospectus. If City officials knew of the EPA's 6 findings of violations and failed to disclose these in the prospectus and to advise the bond underwriter and rating agencies accordingly, Bernie Madoff's residence hall may have a few new inhabitants. Furthermore, an interest rate over 5% for tax-exempt 30-year bonds doesn't strike me as any bargain for the city in this interest-rate environment. 30-year fixed-rate mortgages go for that these days and they're taxable!
Ed Foster
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EdFoster writes:
Mr. Issler,
There is no mention of the EPA's possible litigation and/or fines against the City in the bond prospectus. If City officials knew of the EPA's 6 findings of violations and failed to disclose these in the prospectus and to advise the bond underwriter and rating agencies accordingly, Bernie Madoff's residence hall may have a few new inhabitants. Furthermore, an interest rate over 5% for tax-exempt 30-year bonds doesn't strike me as any bargain for the city in this interest-rate environment. 30-year fixed-rate mortgages go for that these days and they're taxable!
Ed Foster
Share your thoughts
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.