Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
WICHITA, Kan. (AP) — Federal authorities have filed securities fraud charges against Kansas accusing the state of misleading investors about the financial health of its underfunded public employee pension system.
The Securities and Exchange Commission said Monday that the state has consented to its cease-and-desist order to settle the case. The state has since adopted policies and procedures to help ensure disclosures about pension liabilities are made in its bond offerings.
Let's see. No link.....could we jump to conclusions and say that Versatile was trying to "mislead" us here? Certainly not when Versatile was so adamant that being untruthful is such a bad thing in the Cheney thread.
The SEC notice pertains to claims from August 2009 to July 2010
Not surprised, most do not understand how this works. In the 80-90s they went after the so-called private pensions. There will be more. Govt accounting is very creative. They can show liabilities years in advance and claim it against current yearly revenues.
There is question as to whether the EM’s plan is inflating pension and OPEB liabilities. The unfunded pension liability was adjusted from $650 million reported in 2011 to approximately $3.5 billion—increasing more than five times over two years through unspecified changes to accounting assumptions. This $3.5 billion now represents nearly one-third of the amount Detroit owes to its unsecured creditors, and raises required pension contributions to approximately 100 percent of the city’s $1 billion forecasted budget deficit over the next five years. OPEBs, which were never funded in the past, now have the largest claim at an estimated $5.7 billion.
.... Pension liability methodologies are, in essence, just opinions. More from P&I (emphasis mine):
Apparently the city manager can also be appointed sole trustee of both funds if the funded value falls below 80%.
QUOTE:
In contrast, we say Orr and Judge Rhodes should claw the back the $300 million paid to UBS and Bank of America for their interest rate swaps which smell of fraud, not turn over another $85 million to these banks. What about clawing back the $537 million paid to UBS, JP Morgan Chase, Loop Financial and Morgan Stanley out of the $1 billion in bonds that was supposed to for water department infrastructure repair, and instead went to terminate interest rate swaps on these bonds.
Not surprised, most do not understand how this works. In the 80-90s they went after the so-called private pensions. There will be more. Govt accounting is very creative. They can show liabilities years in advance and claim it against current yearly revenues.
There is question as to whether the EM’s plan is inflating pension and OPEB liabilities. The unfunded pension liability was adjusted from $650 million reported in 2011 to approximately $3.5 billion—increasing more than five times over two years through unspecified changes to accounting assumptions. This $3.5 billion now represents nearly one-third of the amount Detroit owes to its unsecured creditors, and raises required pension contributions to approximately 100 percent of the city’s $1 billion forecasted budget deficit over the next five years. OPEBs, which were never funded in the past, now have the largest claim at an estimated $5.7 billion.
.... Pension liability methodologies are, in essence, just opinions. More from P&I (emphasis mine):
Apparently the city manager can also be appointed sole trustee of both funds if the funded value falls below 80%.
QUOTE:
In contrast, we say Orr and Judge Rhodes should claw the back the $300 million paid to UBS and Bank of America for their interest rate swaps which smell of fraud, not turn over another $85 million to these banks. What about clawing back the $537 million paid to UBS, JP Morgan Chase, Loop Financial and Morgan Stanley out of the $1 billion in bonds that was supposed to for water department infrastructure repair, and instead went to terminate interest rate swaps on these bonds.
Absolutely. The Feds seem to go after everyone except the bankers.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
