Thursday, August 6, 2009

National Guard Needed To Protect Alabama County From Fatal Interest Rate Swaps

Civil unrest alert!

A few years ago Jefferson County, Alabama bought 17 interest rate swaps from JP Morgan, Lehman Brothers and Bank of America with the intention of hedging interest rate risk.

Today the county said it may need the National Guard to hedge the the "anarchy risk" it now faces as a result of the fiscal disaster its venture into "sophisticated" derivatives turned out to be.

(more)

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