With the settlement “finalized and executed,” the state of Illinois is set to collect $33.6 million while Edelweiss principal Johan Rosenberg will receive $14.4 million as a reward for bringing the lawsuit on behalf of the government. The remaining $22 million will be set aside to pay for the legal expenses incurred by Edelweiss through the years.
Interesting how the majority goes to the state of IL as well. I smell another avenue of laundering
Edelweiss accused the group of Wall Street firms of “widespread fraud and collusion” after the state of Illinois hired them to market municipal bonds known as variable rate demand obligations (VRDOs) at the lowest possible interest rates.
VRDOs are tax-exempt bonds issued by municipalities to get long-term financing, usually spanning 20 to 30 years.
But instead of marketing the bonds at low interest rates, the banks allegedly inflated the rates to generate millions of dollars in fees and discourage investors from converting the debt securities to cash.
With the settlement “finalized and executed,” the state of Illinois is set to collect $33.6 million while Edelweiss principal Johan Rosenberg will receive $14.4 million as a reward for bringing the lawsuit on behalf of the government. The remaining $22 million will be set aside to pay for the legal expenses incurred by Edelweiss through the years.
70 Million. A minor fee for these damned institutions
Interesting how the majority goes to the state of IL as well. I smell another avenue of laundering
Seriously. Gov gives insider info to bank, bank gives kickbacks to gov, gov catches bank breaking rules, bank gives more money to gov.
VRDOs are tax-exempt bonds issued by municipalities to get long-term financing, usually spanning 20 to 30 years.
But instead of marketing the bonds at low interest rates, the banks allegedly inflated the rates to generate millions of dollars in fees and discourage investors from converting the debt securities to cash.
With the settlement “finalized and executed,” the state of Illinois is set to collect $33.6 million while Edelweiss principal Johan Rosenberg will receive $14.4 million as a reward for bringing the lawsuit on behalf of the government. The remaining $22 million will be set aside to pay for the legal expenses incurred by Edelweiss through the years.
and yet Trump is fined half a billion for something that cost no one anything, but was allegedly harmful to institutions similar to these banks...
Pennies on the dollars they made from this fraud. What is a $70M fine when you made $70B?
Looks like they stole 700 million and payed back .10 on the doller.
Free money machine.