- Chicago Newstips by Community Media Workshop - http://www.newstips.org -

Charge ‘toxic rate swaps’ cost CPS millions

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With budget deficits on every horizon, there’s new attention on banks that are raking in exorbitant windfall profits from their business with public entitities.

A couple weeks ago community groups targeted JP Morgan Chase, demanding the bank renegotiate “toxic rate swaps” which are costing the state hundreds of millions of dollars (see previous post [2]).

Tomorrow the Chicago Teachers Union [3] will demand that banks end interest rate swap agreements with CPS – some of which run through 2036, according to the union.  They want four banks to return $125 million they’ve made from the deals since interest rates plummetted following the financial crash in 2008.

Cook County Clerk David Orr with join CTU president Karen Lewis at a press conference at 9:45 a.m., Wednesday, May 25, outside the Bank of America Building, 135 S. LaSalle.