A painful read indeed.

"People with Morgan Keegan told me, 'Don’t worry if you don’t understand it.'"

That's the story of our present economy in a nutshell.

Wonder how many bigger cities are affected? Sounds like a pretty widespread problem in Tennessee.

I hopped on here to post this same link. What really struck me -- other than the sheer scariness of the story -- is that no media outlet in Tennessee has bothered to report on this. I was already thinking that when I got to the part that said there was a legislative hearing on the matter in the last couple of weeks. All we've been hearing about is Stacy Campfield's nonsense and gun permits and laws against baggy pants. I've been wondering what on earth the legislature does in this state. I had to read it in the NYTimes.

That's sad.

Just sayin'.

Pam Strickland

"We are what we pretend to be, so we must be careful about what we pretend to be." ~Kurt Vonnegut

After The New York Times made inquiries, the Tennessee comptroller, Justin P. Wilson, ordered a statewide freeze on bond derivatives and a review of the seminar taught by Morgan Keegan and others.

The State of Tennessee had to have contact from The NYT to know there was a problem. Geez!

Municipal bond experts say they know of no other state where a firm was allowed to wear three hats; several states prohibit a single firm from acting as both adviser and underwriter.

Sheesh!

I keep thinking about Scoobie Moore going on that financial seminar/golf vacation. What easy pickings our insular, donor-controlled politics offers firms like Morgan Keegan.

Nashville had a city council member with bond experience trying to steer them away from risky financing for their stadium, but she was overruled, so even when a public body has adequate experience at its disposal, the shysters can still grease enough palms and lard enough bellies to close the deal.

Wilson was a Sundquist crony from previous administrations and in my opinion, the Sundquist administration was a poster child for people in office who did not have the skills/background/understanding of the areas they were responsible for. Sundquist gave us the illegal immigrants who got Tennessee drivers licenses although they were not here legally and created a haven for individuals across the country to get P.O. Boxes or mail drops in Tennessee and get free medical care on the TennCare program.

Saddest thing is Morgan Keegan and Bass Berry and Simms are homegrown Tennessee businesses which ought not be putting their communities in these risky ventures, but anything for a buck these days, regardless of whether or not the community benefits, as long as the broker/underwriter/lawyers get a fee, they live to fight another day.

I do not begin to understand this stuff but I was confused with the reference to Ayres. The following video link takes you to the Blount County Commission's talk of this in Feb 2009. Just open the menu to FEB 2009 Commission ( not Work Session) then go up to the 1:13 time stamp.

(link...)

Some folks will understand this very long exchange between Commissioner Wendy Pitt Reeves, Joe Ayres and Blount County ViceMayor/Director of Budgets Dave Bennett.

The members of the Tennessee General Assembly are notorious for looking out for their big business buddies. Todays New York Times gave us a particularly messy example.

In 1999, the General Assembly passed HB1530/SB1543, which allowed municipalities to purchase bond derivatives. It also allowed MorganKeegan to educate local governments about these bonds at the same time that the bank underwrites them.

Now the interests rates on these bonds have skyrocketed, and local governments are in big trouble across the state.

Three legislators now running for governor voted in favor of these bills. Kim McMillan on May 19, 1999. Roy Herron and Ron Ramsey on May 27, 1999.

Makes you wonder what these three would do to our state.