Perhaps the details of Mayor Daley's reputation were not entirely explained to the deal team at Mesirow.
The Metropolitan Water Reclamation District of Greater Chicago, in a debt offering typical of President Barack Obama's Build America Bonds, raised $600 million this week, relying on advice from Mesirow Financial Inc., a 72-year-old investment bank based in the city. Within 12 hours, the firm assured itself and investors a profit of at least 2 percent as the bonds appreciated as much as $25.82 for each $1,000 face amount, according to the Municipal Securities Rulemaking Board.
Wall Street fleecing financially naive municipalities is a practice as old as sin, but you would think Chicago had the wherewithal to protect itself a bit better from this kind of nonsense. Then again, perhaps we are selling the City short. In this context, one wonders how much overlap there might be between Mesirow and the City elders.
Even Mayor Daley Can't Get Rates Taxpayers Deserve for Chicago [Bloomberg]