Bloomberg Articles Pertaining to Competitive and Negotiated Bond Sales


Beginning in 2004, Bloomberg, a  leading global provider of data, news and analytics, published a series of articles and commentaries regarding the high cost to taxpayers resulting from negotiated bonds sales.

 

Concerned Citizens’ Guide to US Public Finance, December 2004
(Summary: Mysak urges citizens to ask public officials questions regarding negotiated bond sales.)

 

States, Cities Shun Finance Competition, Victimizing Taxpayers, January 2005
(Summary: Through negotiated sales, underwriters have taken control of municipal finance, causing governments to pay millions of extra dollars in interest costs and fees as much as six times higher than comparable issues sold competitively.)
 

SEC Official Says No-Bid Bond Sales Raise 'Conflict' Concerns, February 2005
(Summary: Article regarding no-bid bond sales includes concerns expressed by Martha Haines, head of public finance regulations at the Securities and Exchange Commission, regarding underwriters' contributions to bond referenda.
)


Citigroup `Double-Dipped' Louisiana Taxpayers With No-Bid Bond
, February 2005
(Summary: According to data compiled by Bloomberg, Louisiana paid about $8.2 million more in borrowing costs for its negotiated sale than for an issue that was competitively sold only four months earlier.)
 

The Banks that Fleeced Alabama, September 2005
(Summary: Bloomberg reported that taxpayers are angry that $160 million in fees were paid to JP Morgan Chase and other banks to arrange financings that were never put out to bid.)
 

Bond deals fair to taxpayers?, September 2005
(Summary:  Hawaii has sold more than $10 billion dollars worth of bonds for roads, schools and other projects without seeking bids.  This practice may have cost taxpayers $6 million at Hawaii’s last sale alone.)
 

Missouri Taxpayers Lose on Non-Competitive Bond Sales, January 2005
(Summary: Article described the findings of Missouri State Auditor Claire McCaskill’s 2005 report on Missouri’s general obligation bond sale practices.  For this article, Bloomberg  interviewed Roger Kurtz, associate director of the Missouri Association of School Administrators who said “Schools favor negotiated sales because they believe they require less time and work of superintendents and other administrators”.)
 

Missouri Bond Study Shows Dim Issuers, Mad Bankers,  January 2006.
(Summary: “Municipal bond issuers are lazy, when they aren’t entirely clueless”)
 

Oregon Taxpayers Denied Benefits of Competitive Bid by Schools, December 2006
(Summary:  “At Southwestern Oregon Community College, anyone taking ECON201 learns that monopolies drive up prices and competition brings them down.”  Even so, the College and the majority of local governments in Oregon engage Seattle-Northwest Securities Corp. as underwriter without competitive bidding.”)

 


 

About WMFS

Background

Experience

Resume

Services

Resources

News

Site Map

Home

WM Financial Strategies
11710 Administration Drive
Suite 7
St. Louis, Missouri 63146
Phone (314) 423-2122
Fax (314) 432-2393
JHoward@munibondadvisor.com