Nationwide Inquiry on [Possible Collusion on] Bids for Municipal Bonds

[Silverbird]

"... Three federal agencies and a loose consortium of state attorneys general have for several years been gathering evidence of what appears to be collusion among the banks and other companies that have helped state and local governments take approximately $400 billion worth of municipal notes and bonds to market each year.

E-mail messages, taped phone conversations and other court documents suggest that companies did not engage in open competition for this lucrative business, but secretly divided it among themselves, imposing layers of excess cost on local governments, violating the federal rules for tax-exempt bonds and making questionable payments and campaign contributions to local officials who could steer them business. In some cases, they created exotic financial structures that blew up.....]
http://www.nytimes.com/2009/01/09/business/09insure.html?_r=1&th&emc=th

 

[Steadygain]

"... Three federal agencies and a loose consortium of state attorneys general have for several years been gathering evidence of what appears to be collusion among the banks and other companies that have helped state and local governments take approximately $400 billion worth of municipal notes and bonds to market each year.

E-mail messages, taped phone conversations and other court documents suggest that companies did not engage in open competition for this lucrative business, but secretly divided it among themselves, imposing layers of excess cost on local governments, violating the federal rules for tax-exempt bonds and making questionable payments and campaign contributions to local officials who could steer them business. In some cases, they created exotic financial structures that blew up.....]
http://www.nytimes.com/2009/01/09/business/09insure.html?_r=1&th&emc=th

At this point the GREATEST PROBLEM is how to deal with the individuals involved. We give Mandatory Long Prison Sentences for numerous offenses that 'cost little in comparison' - but CRIME of this magnitude is essentially dismissed.

I'd say the best place to start is immediately determining an amount associated with MANDATORY 30 YEAR PRISON TERMS for say $5,000,000 - that way when Billions come in they fry.

 

[Silverbird]

It would be nice if we could garnish their wages - unfortunately some may already have made their money and ran.