The Macomb Daily recently reported, what seems to me, a small sampling of the hits taken by Michigan's public institutions after being sold toxic - read fraudulent - securities by Wall Street Banks.
Meanwhile, the big banks’ shenanigans hit Michigan taxpayers hard, in a roundabout way, because several public institutions got burned by engaging in “toxic” deals that were sold as solid investments but actually hinged on risky financial products. These “interest rate swaps” have reportedly taken their toll on government budgets:
Detroit, a loss of more than $94 million;
the Michigan State Housing Development Authority, more than $23.8 million;
Michigan State University, $10.4 million;
L’Anse Creuse school district, $2.8 million;
and Highland Park, $1.2 million.
(Emphasis mine)
This can’t be a complete list. There are a lot of people who read this blog that can add to this list of toxic securities sold to Michigan's public institutions - including Michigan Pension funds - that are now causing budget cuts, cuts in pension benefits, cut-back of civil services, layoffs and outright financial martial law. I encourage anyone who has knowledge to compile them and add them to the list through your own diary or even in the comments here. It is time to make our mark and compile a public and concrete record of fraud perpetrated against Michigan's public institutions by Wall Street.
