Variable Rate Bonds News Today

The Illinois case is part of several state-level lawsuits brought by Minnesota-based municipal advisor Johan Rosenberg, accusing banks of conspiring to set the interest rates of state-issued VRDOs artificially high.

It's one of four state cases accusing Wall Street banks of a "robo-resetting" scheme that kept interest on variable-rate debt artificially high.

Providing, among other things, for the succession of Mary Miselis to Beata Harvin as Co-Trustee under such Mortgage and Deed of Trust, and First Mortgage Bonds,... | April 5, 2023

Variable-rate debt, tender option bonds and even prepaid gas bonds may stage a comeback in the current market, panelists at a GFOA conference said.

Recent court decisions have the potential to up the ante in lawsuits accusing major banks of manipulating the variable-rate market.

The inclusion of swaps has the potential to increase claimed damages in the New York State lawsuit, though banks view swap materials as providing a potential defense.

The federal lawsuit brought by Philadelphia, San Diego and Baltimore on behalf of thousands of issuers is similar to a series of closely watched state whistleblower cases that claim banks manipulated interest rates on variable-rate bonds.

The office of Rob Bonta filed its objection to the dismissal with a California appellate court in San Francisco May 19.

Avoiding even the appearance of representing conflicting interests is important for attorneys and municipal advisors alike.

A proposal from the Ohio Treasury would provide a new enhancement for state-purchased public university debt and offer a backstop for hospitals' VRDOs.