Bad financial move could cost city taxpayers millions

cityhall

A bad financial gamble by the City of Chicago could cost taxpayers $200 million.

The Sun-Times reports, former mayor Daley’s administration gambled on a risky scheme known as interest-rate swaps.

The deals allow banks to call in their loans and collect big fees if the city’s credit rating drops.

It was lowered four times in the past year; any further drop could trigger those fees.

A similar bad investment drove Detroit into bankruptcy.

Mayor Rahm Emanuel says the city is trying to reduce its risk.

3 comments

  • arubatom

    The "bad financial move" isn't just limited to interest rate swaps. Looking at the waste in city government (why are 50 aldermen needed, for example), just add the interest rate swap problem to the pile. Let's also remember the parking meter fiasco…Daley and his cronies left a mess, and it keeps getting worse. Of course the city is not alone, when you add in Crook County and State government waste…well you get the picture!!

  • victor juta burgos

    We should not have to keep paying for the stupidity & choices this city makes. It's bad enough that everything is going up in cost.

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