The most-densely populated U.S. state is making the payments under an agreement made during the administration of former GovernorJames E. McGreeveyin 2003, when New Jersey’sTransportation Trust Fund Authoritysold $345 million in auction-rate bonds whose yields fluctuated with short-term interest costs. The agency finances road and rail projects.
“This vividly shows the risk of entering into interest- rate swap agreements,” saidChristopher Taylor, former executive director of theMunicipal Securities Rulemaking Boardin Alexandria, Virginia. “The world’s got to see what stupidity even the sophisticated investors like the transportation fund can get into.”
While New Jersey replaced the debt with fixed-rate securities in 2008
Here in America, the corporate class is now entirely out of control, lawless and beyond the sanction of prosecutor, juror or ballot box. If corporate lawbreakers felt that somewhere along the line the retribution of the guillotine might await them, it would concentrate their minds marvellously, and cow them into lawfulness.