When the Culinary Institute of America needed to raise money to pay for a new building they turned to a Goldman Sachs banker for advice. He told them to issue auction rate securities. That piece of advice cost them nearly half a million dollars when the market seized up and the interest rate of the securities shot up to 14 percent, Bloomberg reports.
Auction-Rate Collapse Costs Taxpayers $1.65 Billion [Bloomberg]
-
Posted in:
Auction Rate Securities
Auction Rate Securities Victim Watch: The Culinary Institute of America
By John CarneyComments (2)
Leave a comment
You can log in with your account or comment as a guest below.
That lawsuit? Yummy.
That lawsuit? Yummy.