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December 14, 2009
Demonstration today against Ratner's bonds targets not the underwriter but the ratings agencies (which need reform)
Atlantic Yard Report
From a DDDB press release:
Join Develop Don’t Destroy Brooklyn in a Demonstration to Protest the extremely risky tax-exempt bonds New York State is preparing to sell for Ratner's arena. We will highlight S&P and Moody’s questionable bond ratings. Lacking in normal due diligence, the bond ratings were set just a “notch above junk.’ These “Junk Yards Bonds” create enormous risks for New York State, its taxpayers and the investment community, at a time when the State's budget gap is in crisis. While the Governor is making huge cuts in crucial sectors such as health and education, the State continues to back Atlantic Yards—a financial house of cards.
So, why exactly are the bonds "lacking in normal due diligence"? DDDB says to stay tuned.
And how do they "create enormous risks for New York State"? Well, maybe they do and maybe they don't.
The demonstration will take place at noon, not outside the office of underwriter Goldman Sachs but outside the ratings agency Standard & Poor's. Interestingly, S&P was somewhat more cautious than rival Moody's regarding the tax-exempt bonds; the latter took the projected 225 arena events a year as gospel, while S&P considered 220 events "aggressive."
Posted by eric at December 14, 2009 10:39 AM