Saturday, March 21, 2015

Obamaville School Disaster

From the Chicago Sun Times: Chicago’s deep financial problems worsened Friday as a Wall Street bond-rating agency dramatically downgraded the credit of the city’s school system — triggering penalties that could come to more than $200 million.
Fitch Ratings dropped the Chicago Board of Education’s credit score by three notches. The plunge came two weeks after another agency, Moody’s Investors Service, also reduced its rating on the school district’s debt.
Chicago Public Schools is required to maintain a certain credit rating under the terms of complex debt “swap” deals with financial institutions. Failure to do so could activate termination clauses in the deals and CPS could have to make payments to the financial institutions.
Friday’s report from Fitch means CPS has dropped below the threshold for terminating the deals. According to Fitch, CPS could be forced to pay $263 million in penalties as a result.
In filings with federal regulators, though, Chicago school officials said the liability is less than that — $228 million.
So, either $228,000,000 or $263,000,000 is money that won't go to the children of Chicago but going to banks because the politicians of Chicago have their head up their butts.
Only in Obamaville, where Obama owns a house which is guarded 24/7 byt the Secret Service.

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