Comments on Advance Indiana™: Trying To Make Sense Of Water Company's Variable Rate Bond Mess

They make these decisions because they all drink f...

2009-04-24T18:54:00.000-05:00

They make these decisions because they all drink from the same kool-aid. Any dissenters are eliminated early on from any decision making process. So, groupthink prevails over commonsense.

Thanks Gary, can Atterholt be that clueless? Lets ...

2009-04-23T23:36:00.000-05:00

Thanks Gary, can Atterholt be that clueless? Lets just raise rates to pay off millions in extra costs and when we get a handle on the (if we ever do) bonds and finances we will just issue more variable rate bonds in excess of the 15 percent cap that was put into effect the other night. La de da de da! This guy is the state Insurance Commisioner. That's scary! He doesn't have a clue!

Kevin worked in a completely separate area of AIG....

2009-04-23T09:18:00.000-05:00

Kevin worked in a completely separate area of AIG. He advised on municipality credits for their investment group. They have many facets of the company, and the ones that got them in trouble were unrelated to where Kevin worked.

jabberdoodle, Who knows exactly what it was for. T...

2009-04-23T09:13:00.000-05:00

jabberdoodle, Who knows exactly what it was for. This has never been fully explained to the public, and nobody in government is demanding an explanation of how it all came about. We've only been told bits and pieces of what has transpired.

It's clear that Kevin Taylor did not even enter th...

2009-04-23T09:12:00.000-05:00

It's clear that Kevin Taylor did not even enter the picture until close to three years after the swap notes had already been entered into by the Bond Bank. The point is the irony that someone who worked for AIG in the go-go days would now be in charge of the Bond Bank. That was my point, and I believe that was TPM's point.

It is my understanding that the $17 million the CI...

2009-04-23T08:42:00.000-05:00

It is my understanding that the $17 million the CIB borrowed last year from the State was to pay off a swap option set up in anticipation of refinancing the Conseco Fieldhouse bonds in 2008. The market tanked for bonds so Conseco's bonds remain the original ones and the swap option termination cost the $17 million. The $26 million due in September is to either buy new insurance for the rest of the CIBs existing bonds, or to set up a cash reserve that would act as insurance.

I have to echo The Bird, Kevin Taylor did not and would not have entered into these deals. He has been working diligently to roll back the City's exposure to variable rate bonds.

The problem here is reflected in your last paragra...

2009-04-23T08:07:00.000-05:00

The problem here is reflected in your last paragraph, Gary.

"Will somebody in government please investigate what is going on?"

In other words, "Would the Genovose's please find out what the Gambino's are doing?"

Does anyone honestly believe that we're gonna get an honest response?

The Talking Points Memo post unfairly implicates t...

2009-04-23T07:07:00.000-05:00

The Talking Points Memo post unfairly implicates that Kevin Taylor has something to do with this whole mess. Kevin's experience at AIG was not in bond default insurance, and furthermore he wasn't even a part of the bond bank when this occurred. That is pure sensationalism.

guy77money, That was Jim Atterholt, the state's In...

2009-04-23T06:34:00.000-05:00

guy77money, That was Jim Atterholt, the state's Insurance Commissioner. Don't ask me how he got appointed.

Who was the idiot on the board in the last water w...

2009-04-22T23:54:00.000-05:00

Who was the idiot on the board in the last water works meeting who was questioning the 15 percent cap on variable rate bonds? He gave me the immpression that this was only a temporary cap! It was at the end of the meeting and I didn't catch his name. There seems to be a "failure to communicate" the facts to some these board members. Which goes to prove that rarely do people look at the finacial reports and use just a little common sense when it comes to major decisions that impact us all.

Yes, The CIB had to refund a variable-rate bond la...

2009-04-22T23:09:00.000-05:00

Yes, The CIB had to refund a variable-rate bond last year at a cost of $17 million. It borrowed the money from the State Treasurer to cover it. The CIB reports that it just repaid the State Treasurer this week.

Am I correct that the CIB also has some shortfalls...

2009-04-22T22:08:00.000-05:00

Am I correct that the CIB also has some shortfalls due to the same types of short term bonds? If so, can anyone tell me why half of the damn #2!&8 city isn't being sued for malfeasance, malpractice or just plain stupidity?

Gary, I still can't get over why the Insurance Com...

2009-04-22T21:35:00.000-05:00

Gary, I still can't get over why the Insurance Commissioner of the State of Indiana, Jim Atterholt, is on the Waterworks Board. That is weird.