Wednesday, March 11, 2009

The Pike and Swaptions

This is some seriously good stuff.

If people want to understand what's behind the Pike's apparent collapse and what the state should do and can do from here, that's the link to click and read.


Anonymous said...

Swaption history and the role of Secretary of Admin and Finance

Per Rep Ehrlich's post, " Back in 2001, options on interest-rate swaps, commonly known as "swaptions," from UBS were used by the Massachusetts Turnpike Authority to generate cash in the short run while gambling on interest rates in the future."

In fact, the first swaptions issued were dated June 18, 1999 and issued by JP Morgan.

Per Emily Micolonghi in the office of Secretary of Administration and Finance, "the Secretary of Transportation chairs the Turnpike board. The Governor appoints the other board members. But the Turnpike board does not report to anyone; it is an independent authority. A&F has no role in its finances."

Charlie Baker's tenure as Secretary of A and F concluded with his resignation on August 31, 1989.

Conclusion: Mr. Baker played no role in the mess that occurred (and is still occurring) at the Mass Pike.

David Whelan

Ryan said...

The buck stops over there?

He was a powerful force in state government; one press release by him to the 4th estate could have sound the warning bell that Malone was trying to push at the time, all the while Celluci was saying the project was on time and on budget. It can be difficult to do the right thing -- it often has tough personal consequences -- but we're all suffering because no one in Celluci's administration, including his top Lt., was willing to speak out.

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