Nationwide Inquiry on Bids for Municipal Bonds

[FreeStateDemocrat]

Source: NY Times


By MARY WILLIAMS WALSH
Published: January 8, 2009
The federal investigation that prompted Gov. Bill Richardson of New Mexico to withdraw his nomination as commerce secretary offers a rare glimpse into a long-simmering investigation of possible bid-rigging, tax evasion and other wrongdoing throughout the municipal bond business.


E-mail messages, taped phone conversations and other court documents suggest that companies did not engage in open competition for this lucrative business, but secretly divided it among themselves, imposing layers of excess cost on local governments, violating the federal rules for tax-exempt bonds and making questionable payments and campaign contributions to local officials who could steer them business. In some cases, they created exotic financial structures that blew up.

People with knowledge of the evidence say investigators are not just looking at a few bad apples, but also at the way an entire market has operated for years.

“It’s rare to sell a Senate seat, but it’s not rare to sell a bond deal,” said Charles Anderson, who retired as manager of tax-exempt bond field operations for the Internal Revenue Service in 2007. “Pay-to-play in the municipal bond market is epidemic.”



Read more: http://www.nytimes.com/2009/01/09/business/09insure.htm...

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The only reasonable conclusion is that the financial sector is absolutely corrupted and handing this criminal element 700 billion in taxpayer's dollars by our Congress is a complicit collusion to swindle the American people.

[Joanne98]

1. This is a really big deal! K&R

[acmavm]

2. The 'financial sector' has been screwing the country for years and

now they're using the taxpayers as their own personal piggy bank.

[Zenlitened]

3. Fifth rec.

And well-said:

"...the financial sector is absolutely corrupted and handing this criminal element 700 billion in taxpayer's dollars by our Congress is a complicit collusion to swindle the American people."

[Vincardog]

4. handing this criminal element 700 billion in taxpayer's dollars by our Congress is a complicit collu