Today's Date: Add To Favorites
Alabama Sues Banks In $3.2 Billion Bond Fiasco
Headline Legal News | 2008/09/04 07:24
Alabama sued bond consultants Blount, Parrish & Roton and 12 banks and insurers for their part in Jefferson County's sewer bond fiasco: the $3.2 billion debt has the county on the verge becoming the nation's largest-ever municipal bankruptcy. The state claims Blount Parrish bribed Jefferson County Commission President Larry Langford to get its consulting contract, and JP Morgan Chase Bank and others profited by refinancing the enormous debt with auction rate securities and interest rate swaps, for their own benefit.

The Jefferson Parish sewer bond fiasco was the lead item in New York Times financial columnist Gretchen Morgenson's Sunday column on Aug. 31. Morgenson used Jefferson County to illustrate the perils faced by investors in municipal securities, which have $2.6 trillion in outstanding debt.

As state entities, the municipal agencies are largely free of regulatory oversight. More than half of them have failed to file required financial reports, and more than 25 percent chronically fail to do so, Morgenson reported, citing a recent study by DPC Data, "one of four data collectors known as nationally recognized municipal securities information repositories."

Alabama claims in Jefferson County Court that Blount Parrish JP Morgan Chase employee Charles LeCroy, "on behalf of defendants JP Morgan and JP Morgan Bank, teamed with defendant Blount Parrish to perpetrate the plan of refinancing the County's fixed rate sewer debt with auction rate securities and interest rate swaps, such plan to be for the benefit of the Defendants. It is alleged that co-conspirators Blount and LeCroy, having secured the cooperation of Langford, seized the opportunity to launch the massive sewer debt re-finance plan at issue herein which has brought the County to the brink of ruin.

"As a direct and proximate result of the Defendants' alleged conduct, the County and the public have suffered enormous financial harm and the future viability of the County's operations vital to the public has been put in imminent peril. Each Defendant allegedly profited directly fro the scheme or conspiracy perpetrated by Langford, Blount, LaPierre and LeCroy with each Defendant receiving valuable and lucrative contracts relating to the County's bond offerings and swap contracts."
(LaPierre is Al LaPierre, of Blount Parrish.)

The State says that "public corruption in Jefferson County government is well documents. In the past several years there have been 21 criminal convictions related to the sewer system, including the conviction of a former county commissioner.

Named as defendants are Blount Parrish & Roton, JP Morgan Chase & Co., JP Morgan Chase Bank, Bear Stearns Capital Markets, Stern, Agee & Leach, Bank of America NA, CDR Financial Services, Goldman, Sachs Capital Markets, National Bank of Commerce of Birmingham, Bank of New York, Financial Guaranty Insurance Co., Financial Security Assurance Inc., and XL Capital Assurance.

The State is represented by James O'Neal and Law One Group of Birmingham.


[PREV] [1] ..[1615][1616][1617][1618][1619][1620][1621][1622][1623].. [1875] [NEXT]



All
Legal Business
Headline Legal News
Court News
Court Watch
Legal Interview
Topics in Legal News
Attorney News
Press Release
Opinions
Legal Marketing
Politics
Courts: Bail reform working, but sus..
Maldives court delays reinstating pr..
Inmate in landmark Supreme Court cas..
GOP to take new congressional map to..
Afghans submitted 1.17 million war c..
City, landowner appeal Supreme Court..
Ohio court to hear online charter sc..
Beleaguered gunmaker Remington point..
Court: Ex-West Virginia judge inelig..
Wisconsin Supreme Court primary will..
Kushner firm seeks court change to k..
Judge to ask EU court about post-Bre..
 Law Firm Web Design Information
Law Promo has worked with attorneys, lawyers and law firms all over the world in designing beautiful law firm websites that look great on all devices, from desktop computers to mobile phones. Law Promo can construct your law firm a brand new responsive law firm website, or help you redesign your existing site to secure your place in the mobile world. Law firm website design by Law Promo


   Lawyer & Law Firm Links
Houston Car Accident Attorneys
Wrongful Death Attorneys Houston
Houston Wrongful Death
Chicago Business Law Attorney
Corporate Litigation Attorneys
www.rothlawgroup.com
Law Firm Website Designs
Law Office Website Solutions
www.webpromo.com
Amherst, Ohio Divorce Lawyer
Sylkatis Law - Child Custody
loraindivorceattorney.com
Santa Ana Workers' Compensation Lawyers
www.gentryashtonlaw.com
Fort Lauderdale DUI Lawyer
Miami Drug Crimes Lawyer
www.mishalilaw.com
Fort Washington Employment Lawyer
Attorney Marc E. Weinstein
www.meweinsteinlaw.com
San Francisco Trademark Lawyer
San Jose Trademark Lawyer
www.onulawfirm.com
 
 
Disclaimer: The content contained on the web site has been prepared by Romeo Media as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. Blog postings and hosted comments are available for general educational purposes only and should not be used to assess a specific legal situation. Legal Business News for You to Reach America's Legal Professionals. Get the latest legal news and information.