Wednesday, November 4, 2009

J.P. Morgan Chase has to forfeit $647 million of Jefferson County's debt

The U.S. Securities and Exchange Commission charged J.P. Morgan Chase yesterday for its involvement in the infamous bond swaps that led to former Jefferson County Commissioner and former Birmingham mayor Larry Langford being charged for all 60 counts of federal bribery and corruption along with investment banker Bill Blount and Al LaPierre. J.P Morgan has to pay Jefferson County $50 million up front and forfeit $647 million in termination fees of the $4.2 billion debt owed to them from Jeffco.  The $50 million will be paid towards displaced county employees, residents, and sewer rate payers. 

Of course, the bold and oftentimes out of control black Democrat, Shelia Smoot, said that she plans on exploring the options of suing J.P. Morgan.  Other commissioners including William Bell and Jeffco Commission President Bettye Fine Collins agrees. 

However something tells me that those lovely lawyers that sued the county to repeal the occupational tax will beckon towards getting some of that money so they can get the money back for the taxpayer, i.e. they are trying to get their share which 60% of the settlement.  Also Smoot and others are following what others have done in other municipal governments involving bonds and loans where they feel that they were getting a raw deal with this and sued to get off the hook.  Maybe Jefferson County can settle all this of this $3.6 billion left over in debt with J.P. Morgan.

We'll see...

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