CTU official asks why Board refused to arbitrate 'toxic swaps' at hastily called hearing on billion dollar bond issue... Board gives vague answer...
Board members did not answer Potter's questions. James L. Bebley, the Board's legal counsel (who was seated next to Interim CEO Jesse Ruiz during the bond hearing), said, "At
this moment, the Board is negotiations with a number of banks," so there would be no official comment about the toxic interest rate swaps at this time. Above, Potter during the regular meeting of the Board. Substance photo by Sharon Schmidt.Jackson Potter, member services coordinator of the Chicago Teachers Union, was the only public speaker at the hastily called Chicago Board of Education "hearing" on issuing new bonds to cover the Board's projected budget deficit. The hearing, required by law, was announced on Monday, July 20, 2015, when the Board of Education provided the public with its regular meeting agenda. But there was no other public mention of the "hearing," which was scheduled separately from the regular Board meeting.
Potter asked whether the Board is pursuing legal action against the bankers who sold previous variable rate bonds to the Board. These bonds, issued between 2003 and 2005, include what critics are calling "toxic interest rates." The problems with the variable rate bonds are contributing to the Board's looming deficit. The bond hearing was held at 9 a.m. on Wednesday, July 22, 2015, the same day as the Board's regularly scheduled meeting, which began at 10:30 a.m. The bond report was on the Board's public agenda, and the Board members were expected to vote on the new bonds.
Board members did not answer Potter's questions. James L. Bebley, the Board's general counsel (who was seated next to Interim CEO Jesse Ruiz during the bond hearing), said, "At this moment, the Board is negotiations with a number of banks," so there would be no official comment about the toxic interest rate swaps at this time.
Potter was given two minutes to speak. With his speech plus official announcements, the entire bond hearing lasted seven minutes.
Comments:
By: Jay Rehak
Memo to Forest Claypool: Just sue the banks
My answer to CPS relative to the toxic swap deals that have cost them hundreds of millions: What's to discuss? The banks played CPS and have made hundreds of millions of dollars on these bad toxic swap deals. IF CPS cares about the children of Chicago, they should follow the CTPF lead and Just sue the banks. Period.
By: David R. Stone
What happened with your suit?
Jay,
What was the outcome of the Chicago Teachers Pension Fund (CTPF) lawsuit? Did the banks settle? Did the case go to trial? How much money did CTPF recover?
By: Jay Rehak
partially settled, still ongoing
David,
CTPF sued and has won partial payment; litigation is ongoing, not completely resolved yet. (may still be years away from full resolution).
By: John Kugler
7 min = $1billion
7 minutes disiccusion on ablion dollar feal. This is how the rich get richer. While we fight for crumbs they take over the entire bakery, wheat fields,gain mills and procesding plants!