Bonds and the City and the SEC.

The SEC (Security and Exchange Commission) and City Politics. Gee this sounds like a larger version of Grand Terrace. Again this article is too long to post if you would like an emailed copy please make a reqeust for "SEC Town Bonds" and Gramps will send you the file as an attachment. Grandterracenews@yahoo.com .

Quick bond Oks could return to bite council I

The San Diego Union-Tribune

Page 1 of 4 Quick bond Oks could return to bite council Blame for accuracy may fall to members By Matthew T. Hall
STAFF WRITER
July 2, 2006

It used to be so easy for San Diego to borrow money. The City Council would hurriedly approve huge bond deals without getting bogged down in the details, at times without any discussion at all. Questions about the accuracy of the financial information that would be disclosed to bond buyers never came up at council meetings. The city officials behind the deals left some of those meetings without saying a word. After taking seconds in 2002 to approve a $286 million water bond, then-Mayor Dick Murphy dead panned to a couple of staffers: “I know you two are disappointed that you didn’t get to give a detailed report. I’m kidding.”

This may have been something of a joke at City Hall then, but it’s not one now. The Securities and Exchange Commission has spent nearly 21/2 years investigating San Diego for possible fraud because of failures to disclose information about an underfunded pension system in numerous bond documents from 1996 to 2003. Council members have maintained for months that they relied on city staff members and outside consultants for advice and did nothing wrong, but City Attorney Michael Aguirre accused most of them of securities fraud last year for approving bonds that masked a pension deficit now pegged at $1.43 billion. .........................................

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Quick bond Oks could return to bite council “Not necessarily, just a comment.” “OK, why don’t you go ahead.” Two weeks later, the council approved the bond sale without discussion.
•Matthew Hall: (619) 542-4599; matthew.hall@uniontrib.com

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