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Finally! We get some criminal investigations!

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Conspiracy of Banks Rigging States Came With Crash

May 18 (Bloomberg) -- A telephone call between a financial adviser in Beverly Hills and a trader in New York was all it took to fleece taxpayers on a water-and-sewer financing deal in West Virginia. The secret conversation was part of a conspiracy stretching across the U.S. by Wall Street banks in the $2.8 trillion municipal bond market.

What we need is a version of Move You Money for the bond market. A web site where local governments could search for a local investment banker to float their bonds for them.

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Submitted by lambert on

The Feds have an informant:

A key witness in the government’s case is a former banker whom the government hasn’t named, according to a civil lawsuit filed by Baltimore, Maryland, and six other municipal borrowers against Bank of America, JPMorgan and nine other banks. The banker is providing evidence against his peers.

Bank of America ratted out the other banks:

Bank of America, based in Charlotte, North Carolina, has also been providing prosecutors with evidence since at least 2007. The bank voluntarily reported its own illegal activity and agreed to cooperate with the Justice Department’s antitrust division, according to a press release from the company. ... In exchange, the government promised in an amnesty agreement not to prosecute the bank.

But this is 2010! So why the three year wait, across two administrations?

Submitted by jawbone on

by Steven D that gives some more details on how the states and local government were scammed. Seems they love to go after schoolboards, which, it seems, don't have the bucks for the best advisors and lawyers (but I may be wrong -- however, cons do luv them the easy marks. And once one district sees a rabbit pulled out of hat, they share their "luck" and "success" with their cohorts in other districts, thus giving the cons good recommendations).

Susie/s post.

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Submitted by cenobite on

To build local organizations that can fund local bond issues?

I'm sure there are plenty of folks with small to moderate amounts of capital that could come together to fund a 5 mil school bond issue and then collect the interest on those bonds. Keeps everything in the community and out of the hands of the banksters.