Bad financial move could cost city taxpayers millions
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.