Friday, August 05, 2011

Monty Hall Meets Public Finance

So I admit this all more Public Finance 102 than most care to get into, but some important things going on that could mean real $$ for some local folks.

First: go back and read RL's piece on some regulatory judgements against big finance players for past (bad) practices in municipal finance land: Local school districts recoup money from bid-rigging settlements
Then go read the more recent WSJ article: Bid Rigging Pact Hits a Snag

Local dots to connect in those two stories. Some local folks should really be looking to get their share of $$ in all of this, but I have this sinking suspicion that they might not be pushing too hard.

More generally on public finance.  If you recall the little tempest with the bond deal that wasn't for the City of Pittsburgh just recently.  It was a bit strange. Bond offerings do fail, but not all that often and when they do you have to ask yourself if your underwriter priced the debt correctly.  Whatever happened last week, one of the fallouts from the bigger Wall Street tempest in the last week has been that municipal bond rates have really collapsed.  If you can't get a good rate as a municipal borrower these days, then there is something going on worth digging into. 

5 Comments:

Anonymous MH said...

The city should have sprung for a fancy binding on its POS.

Friday, August 05, 2011 8:03:00 PM  
Anonymous The Wiz said...

Will the S & P downgrade of the US from AAA to AA+ have any affect on local financial affairs?

Friday, August 05, 2011 9:59:00 PM  
Anonymous MH said...

Probably.

Friday, August 05, 2011 10:28:00 PM  
Anonymous Anonymous said...

The city's failed deal had nothing to do with the market and everything to do with the choice of underwriter.

Monday, August 08, 2011 9:50:00 AM  
Blogger C. Briem said...

I am sure they put out an RFP for underwriting services.

Monday, August 08, 2011 8:54:00 PM  

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