L.A. and now Oakland have or will soon repudiate interest rate swaps made with investment banks
The basic idea: the city needs a break, and if Bank of New York Mellon doesn’t give them one, the city is ready to use the power of moving its business in order to get what it wants. It’s that simple.
Europe bars Wall Street banks from government bond sales. Would you trust them?
“Governments do not have the confidence that the excessive risk-taking culture of the big Wall Street banks has changed and they still cannot be trusted to put the stability of the financial system before profit,” said Arlene McCarthy, vice chair of the European parliament’s economic and monetary affairs committee.
As Sue mentions in the previous post about strategic defaults, it’s not just homeowners that are doing them. You can add municipalities to the list.
And it appears everyone hates the banksters now. Except Obama and Rahm, of course.