Posted on 07/19/2013 6:27:45 PM PDT by george76
The Securities and Exchange Commission accused Miami and its former budget director of securities fraud related to several municipal bond offerings.
The city and Michael Boudreaux made materially false and misleading statements and omissions about interfund transfers in three 2009 bond offerings totaling $153.5 million, the SEC said in a statement Friday. Boudreaux orchestrated the transfers to mask growing deficits in the city’s general fund, the SEC said.
The SEC in 2010 started cracking down on state and local governments for not providing investors in the municipal bond market with accurate information about pension liabilities. Since then, Illinois and New Jersey settled with the commission after similar probes. The SEC also accused Miami of violating a cease-and-desist order from 2003 related to similar misconduct.
(Excerpt) Read more at washingtonpost.com ...
I think a lot of people are holding “Detroit” type bonds and have no idea that they will get burnt in the future. Many are going to be in for a shock in the near future when they get stiffed by the state and municipal bloated union pension and medical benefits and receive pennies, if anything, on a dollar. The Feds will step in to pull a Government Motors illegal pay their buddies over other creditors scam.
Detroit is a tiny canary in a very big coal mine.
If Obama had a city, it would look like Detroit.
I thought Miami was in the ACC.
Meredith Whitney has come under fire since her predictions of such a calamity have not happened.....Yet, is the key word, I say.
Math is a b@tch.
Scary times for anyone really paying attention.
$107 Billion debt for NY, $97 Billion debt in Chicago, God knows how much in Miami. It ain’t pretty. A FReeper suggested to me that its different than Detroit because those cities have a tax base to support the debt but it seems to me an adequate tax base would me no debt.
I see a lot of can kicking and a real bad end coming fast.
I thought this was going to be about football...
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