Bloomberg reports that banks have apparently been rigging the municipal bonds market.
They rigged bids on auctions for so-called guaranteed investment contracts, known as GICs, according to a Justice Department list that was filed in U.S. District Court in Manhattan on March 24 and then put under seal. Those contracts hold tens of billions of taxpayer money.
In October, CDR was charged with criminal conspiracy and fraud, along with Chief Executive Officer David Rubin, 48, vice president Evan Zarefsky and Wolmark. They pleaded not guilty. Rubin, who was also charged with making fraudulent bank transactions, faces as much as $3 million in fines and more than 30 years in jail if convicted.Rubin declined to comment in a telephone call.
“Mr. Rubin doesn’t think that CDR broke the law in any of these transactions,” said Laura Hoguet, his attorney in New York.
Daniel Zelenko, a lawyer for Zarefsky in New York, said he was confident his client will prevail at trial.“The government continues to show that it simply doesn’t understand how this market operated,” Zelenko said in an e- mail.
Self-interest, unfettered by ethics, virtue or sunlight, is a wondrous thing indeed. A marvelous source of
innovation. I wonder how we can blame this on Fannie, Freddie, or the government?
I can't wait to see how the viaticals market plays out...."well, yes, we were killing people before their time, but you just don't understand how this market works...." (Hat tip to rjs.)