The founder of another lobbying firm made political contributions totaling $469,400. His firm was later retained by the Erie school board as its "independent financial advisor". On the basis of a recommendation by JPMorgan Chase.
In short, the law was passed as a result of heavy lobbying for several years by financial advisory firms. Lobbying for passage was very intense.
And very non-partisan and very successful. The law was passed by votes of 197-0 in the House and 45-0 in the Senate.
Back to Erie.
The law has proven good for financial firms but not for school districts. The cash-strapped Erie school system received $785,000 for the contract they sold in 2003 and bought their way out of for $2.9 million in 2006. They lost over $2 million to financial hucksters while government stood down and did nothing.
Astute readers might wonder how the cash-strapped Erie school board generated $2.9 million to buy its way out of the deal. The partial answer:
By selling two new interest-rate swaps. Activities eerily similar to those of up-against-the-wall consumers who attempt to delay their financial collapse by borrowing from an instant-cash payday loan operator.
Roosevelt Middle School was closed in 2007 because of lack of funds to repair massive physical deficiencies. Students now meet in temporary space leased from a church.
A Nationwide Scam
Similar laws empowering local government agencies and local school systems to deal in financial derivatives they don't understand have been enacted in 39 other states. Everywhere, local boards of concerned local citizens who sincerely work to make their communities better places to live under some semblance of social justice are at similarly massive disadvantage. Meaning, the sickening experiences of Erie and Bethlehem are being replicated nationwide. And all the while, the government that's supposed to protect its citizens from danger both foreign and domestic stands aside and does nothing.
Required Enabling Legislation
Citizens of Pennsylvania and 39 other states must strive to clean their Statehouses of every incumbent who voted for this type of enabling legislation.
And elect new legislators who will pass new enabling legislation that will allow their Attorneys General and Secretaries of State to protect the citizens.
As in Massachusetts, where government agencies are only allowed to purchase Triple-A rated bonds. Merrill Lynch ignored that law and sold the City of Springfield a collateralized debt obligation for $13.9 million. Less than one year later, the value of that CDO was $1.2 million, representing a loss of over 90 percent.
The Massachusetts Secretary of State courageously charged Merrill Lynch with fraud and misrepresentation. Merrill Lynch quietly settled out of court by paying Springfield their full purchase amount.
JPMorgan Chase and Jamie Dimon
In short, the law was passed as a result of heavy lobbying for several years by financial advisory firms. Lobbying for passage was very intense.
And very non-partisan and very successful. The law was passed by votes of 197-0 in the House and 45-0 in the Senate.
Back to Erie.
Astute readers might wonder how the cash-strapped Erie school board generated $2.9 million to buy its way out of the deal. The partial answer:
By selling two new interest-rate swaps. Activities eerily similar to those of up-against-the-wall consumers who attempt to delay their financial collapse by borrowing from an instant-cash payday loan operator.
Roosevelt Middle School was closed in 2007 because of lack of funds to repair massive physical deficiencies. Students now meet in temporary space leased from a church.
A Nationwide Scam
Similar laws empowering local government agencies and local school systems to deal in financial derivatives they don't understand have been enacted in 39 other states. Everywhere, local boards of concerned local citizens who sincerely work to make their communities better places to live under some semblance of social justice are at similarly massive disadvantage. Meaning, the sickening experiences of Erie and Bethlehem are being replicated nationwide. And all the while, the government that's supposed to protect its citizens from danger both foreign and domestic stands aside and does nothing.
Required Enabling Legislation
Citizens of Pennsylvania and 39 other states must strive to clean their Statehouses of every incumbent who voted for this type of enabling legislation.
And elect new legislators who will pass new enabling legislation that will allow their Attorneys General and Secretaries of State to protect the citizens.
As in Massachusetts, where government agencies are only allowed to purchase Triple-A rated bonds. Merrill Lynch ignored that law and sold the City of Springfield a collateralized debt obligation for $13.9 million. Less than one year later, the value of that CDO was $1.2 million, representing a loss of over 90 percent.
The Massachusetts Secretary of State courageously charged Merrill Lynch with fraud and misrepresentation. Merrill Lynch quietly settled out of court by paying Springfield their full purchase amount.
JPMorgan Chase and Jamie Dimon
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