Category: Rating agencies

A fool and his bond market are soon parted: Part 2, Or go the way of Detroit

5 December, 2013 (09:00) | Bankruptcy, Bonds, Chicago, Cities, Detroit, Local issues, Municipal finance, Rahm Emanuel, Rating agencies, Real estate taxes, Speculation, US News |

[Continued from yesterday’s Part 1.]   By:David A. Smith So far in this post, using as principal source Investors’ Business Daily (November 13, 2013), we’ve seen that (as I speculated two months ago in In Next up: Chicago), Chicago’s finances are nearly as parlous as Detroit’s were, and that Mayor Rahm Emanuel’s recent efforts – […]

A fool and his bond market are soon parted: Part 1, Call it a cliff, call it a precipice

4 December, 2013 (13:27) | Bankruptcy, Bonds, Chicago, Cities, Detroit, Local issues, Municipal finance, Rahm Emanuel, Rating agencies, Real estate taxes, Speculation, US News |

By:David A. Smith   In Next up: Chicago, I spent three posts (Part 1, Part 2, and Part 3) documenting how the Windy City was following Detroit into certain municipal insolvency, and presented the prevaricating evasions offered by Chicago’s former chief auditor (now under indictment);   Last year, now-retiring City Comptroller Amer Ahmad argued that […]

A Grand Unified Theory of municipal insolvency: Part 2, Headed for the brambles

5 June, 2013 (09:00) | Bonds, Cities, David Unkovic, Harrisburg, Infrastructure, Litigation, Loopholes, Markets, Municipal bankruptcy, Municipal finance, Rating agencies, SEC, Solid waste, US News |

  [Continued from yesterday’s Part 1]   By:David A. Smith   If you can’t dazzle them with brilliance, baffle them with bull. – W. C. Fields  Yesterday’s post present part of former Harrisburg receiver David Unkovic’s extraordinary speech to a national symposium on Distressed Municipalities, in which he laid out clearly why he believes that […]

A Grand Unified Theory of municipal insolvency: Part 1, Nothing but a poor man with money

4 June, 2013 (09:00) | Bonds, Cities, David Unkovic, Harrisburg, Infrastructure, Litigation, Loopholes, Municipal bankruptcy, Municipal finance, Rating agencies, SEC, Solid waste, US News |

  By:David A. Smith     Hangman: Have you any last wish? W. C. Fields: Yes, I’d like to see Paris before I die. (Pause) Philadelphia will do.   Philadelphia lawyer David Unkovic, a public-finance bond counsel for thirty years, is an unlikely urban theorist – but then, he recently had an unlikely experience. As I […]

Harrisburg’s quest for the Holy Grail: Part 5, Now we see the violence inherent in the system

24 May, 2013 (09:27) | Bonds, Cities, Harrisburg, Infrastructure, Litigation, Loopholes, Markets, Municipal bankruptcy, Municipal finance, Rating agencies, SEC, Solid waste, US News | 1 comment

[Continued from yesterday’s Part 4 and the preceding Part 1, Part 2 and Part 3.]   By:David A. Smith   In late November, 2011, as the Commonwealth of Pennsylvania was moving to appoint a receiver for its state capitol, Harrisburg, the city council by a 4-3 vote abruptly filed a bankruptcy petition, which was immediately […]