Gretchen Morgenson: How Banks Could Return the Favor


Gretchen Morgenson: How Banks Could Return the Favor

Gretchen Morgenson: How Banks Could Return the Favor


LIKE millions of homeowners, shrewd state and local governments are looking to refinance. Interest rates have hit rock bottom. So why not save some public money by replacing old debts with new ones at lower rates?

The bad news for taxpayers is that such easy refis are out of the question for many governments and agencies short on cash. And that’s because these borrowers have been trapped by Wall Street.

Behind all of this is — you guessed it — derivatives. Bankers have embedded interest-rate swaps in many long-term municipal bonds. Back when, they persuaded states and others to issue bonds and simultaneously enter into swaps. In these arrangements, the banks agreed to make variable-rate payments to the issuers — and the issuers, in turn, agreed to make fixed-rate payments to bond holders.


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3 Responses to “Gretchen Morgenson: How Banks Could Return the Favor”

  1. keepon says:

    More absurdity! WHY would we put the HEAD MAFIOSI, Lloyd Blankfein, in a position to tell us right from wrong? Fear factor. No doubt he’s purchased “professional witness status” to keep his own balls out of the noose. If he knows enough to testify against evil-doers, then why didn’t he “do god’s work” and stop it?

    Now, we have to listen to him say “I don’t think we’re in a position to do that. It wouldn’t be fair to shareholders?” If you wouldn’t want him to give “say anything” testimony at your trial, why put him in a position to be SWINDLER in chief in charge of the final hammer stroke on the masses he swindled. If he knows enough to testify, it’s because he was in charge.

    The masses- victims of HIS version of moral behavior- are being allowed by our government to be further victimized by this Predator-in-Chief? WHY?

    WHY, AGAIN, are the laws/rules/morality only applicable when it’s the Little Guy’s turn to break bondage. WHY did no laws/rule/morality apply when these 1%ers spun the financial web to trap their prey? This is a man whose morality consigned us all to debt slavery.

    The ONLY position this man should be in is a one-way ticket to Iceland. Where the evil-doers, the terrorists are not placed in charge. Where Leaders have the guts to uphold the laws of the Land. Where the victims of the Mafiosi are released from bondage. Why are THEY in a position to do what’s right, but this Nation gets the convoluted hoops-and-hurdles of the Lloyd Blankefeins, the Cronie Capitalists governing and others of his ilk to ‘wet on’ any and all relief to the People of this morally bankrupt and leaderless Nation?

    The Emperor has NO CLOTHES! We are OWNED by the KING.

  2. keepon says:

    Stop the “this is such a complex issue” for the everyday man to comprehend meme. It’s as simple as You decided to fuck the People; now, let’s take back their $ to make them whole. Instead you’re paying how much for your daughter’s graduation lunch from high school? That’s obscene.

    Oh yes! Prey listen up. Uncle Lloyd, Vampire Squid-in-charge speaketh!

  3. Ken Hansen says:

    Our favorite journalists sometimes work for very big companies. As a taxpayer I want to see Americans housed, employed, free and educated. TBTF doesn’t seem to be interested in any of those. Let’s return the favor and break them up.


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