BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[SEC investigates JPMorgan over Jefferson County deals]]>http://www.bloggingstocks.com/2009/05/10/sec-investigates-jpmorgan-over-jefferson-county-deals/http://www.bloggingstocks.com/2009/05/10/sec-investigates-jpmorgan-over-jefferson-county-deals/http://www.bloggingstocks.com/2009/05/10/sec-investigates-jpmorgan-over-jefferson-county-deals/#commentsFiled under: , ,

Imagine that you're in Jefferson County Alabama, reading the local paper. You see an article that says that Jefferson County is one of the most indebted municipalities in the U.S. So you read a little further and find that there are layers of payments made to local officials, including the mayor, Larry Langford, who received more than $156,000 in cash from a broker hired to arrange bond offerings and swap agreements on the behalf of Jefferson County. You keep reading and discover that the financing was for a $3 billion sewage system.

The financing was secured from various banks, among them JPMorgan Chase & Co. (NYSE JPM). Everything went along fine until the financial crisis hit the bond market. Bond ratings were driven down, forcing lenders to curtail credit for Jefferson County. The county came under pressure and couldn't make their payments on time. Deadlines came and went, and Jefferson County is now ready to blow up. If it does, it will be the largest municipal default in the nation, making Orange County California's problem look like a spec of sand.

Continue reading SEC investigates JPMorgan over Jefferson County deals

SEC investigates JPMorgan over Jefferson County deals originally appeared on BloggingStocks on Sun, 10 May 2009 09:40:00 EST. Please see our terms for use of feeds.

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With irresponsible borrowing and excessive leverage threatening the financial well-being of so many families, at least one county may be joining them in the soup line.

Jefferson County, Alabama, with a population of 662,047, according to the 2000 U.S. Census, is preparing for a possible bankruptcy filing, according to The New York Times.

Birmingham, Alabama skyline

The culprit? $3 billion in bonds with rapidly escalating interest rates resulting from the exact same short-sighted financial planning that got so many home owners into trouble: adjustable rate loans (In this case, auction rate securities) that require higher interest payments as interest rates move up. The current turmoil in the credit market has sent the county's rates as high as 10%.

Continue reading Alabama county mulls bankruptcy; could be largest failure in history

Alabama county mulls bankruptcy; could be largest failure in history originally appeared on BloggingStocks on Wed, 27 Aug 2008 05:00:00 EST. Please see our terms for use of feeds.

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