Big Banks Took Nearly $900 million from Detroit for Terminating Swaps & Gave back Nothing

A. Rashad Abdel-khalik

Chapter 4 in Brazen:Big Banks, Swap Mania and the Fallout, 2019, pp 99-121 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The City of Detroit had acquired and consolidated the water and sewer services of much of the surrounding areas. The Detroit water and sewer systems consist of more than 3,400 miles of local water mains; 3,000 miles of local sewer pipes; 27,000 fire hydrants; and an extensive billing and collection system. The water system covers 1,079 square miles and serves about 40% of the State of Michigan residents. The system is, therefore, extremely vital to the entire state. However, most of the facilities of the acquired local systems needed significant investments because they were old and not well maintained…

Keywords: Swaps; Interest Rate Swap; Unconscionable Contracting; Termination Penalties; Embedded Costs; Paying for Nothing; Gambling; ISDA; Master Agreement; Deceit; Inadequate Disclosure; Hidden Costs; Zero Sum Game; Wealth Transfer; Paper Chasing Paper; Floating Rate; Synthetic Rate; Credit Risk; Demonstrations; Water Shut Off; Union Class Action Suit; The LIBOR Scandal; Non-Profit (search for similar items in EconPapers)
JEL-codes: E43 E44 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813275577_0004 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813275577_0004 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813275577_0004

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().