Why is a bankrupt MTA still issuing bonds?

According to Wednesday's New York Times, the MTA is advertising directly to the public to sell its tax-exempt bonds. Ed Koch is helping with the radio ads. The money is needed to "buy new equipment and maintain the network, which will improve reliability, safety and customer service," says Koch.

Actually, the money will be used to pay off existing bondholders! Why would anyone want to invest before Richard Ravitch files his report in a month or two about the MTA's finances? Two people wrote this story and there's not one mention about the credit rating of the bonds?

Monday's New York Post reports that Ronald Lauder has officially wimped out. Lauder has agreed to third terms for everybody who qualifies.

In return, Lauder will have a seat on a Charter Revision Commission in 2010 to study the issue and possibly place it on the 2010 ballot--after the fact of a "temporary" extension. Oh joy.

Plain fairness requires that everyone acknowledge that the public HAS ALREADY VOTED ON THIS TWICE. Any change should not take place without a public vote. The city council should not vote on a direct benefit to themselves.

This is simple, plain fairness. You'd think that every newspaper in town would demand it.

The last issue of the New York Sun newspaper is today. The newspaper will be missed.

The New York Sun picked a tough business climate to begin (September 11, 2001) and a terrible business climate to go out. Through it all, it published a quality product. Its local New York City coverage will be missed by all, regardless of political bent. Its coverage of the United Nations was outstanding.

This shouldn't be an epitaph. Surely, the Sun will rise in some form, either as a newspaper or on the web.

LINK:

http://www.nysun.com/opinion/ideal-of-the-scoop/86858/

In January 2007, Barclays paid $400 million (over 20 years) for the right to name the Brooklyn Nets arena at the Atlantic Yards the "Barclays Center." This week, Barclays paid just $250 million for Lehman Brothers' entire United States operation!

The big question here is: Was this always Barclays' plan, to take over an American investment house on the cheap?

The January 2007 announcement that the Brooklyn arena would be named the Barclays Center made no sense at the time, but makes perfect sense now. At the time, it was the most expensive naming of any sports arena ever. Barclays had no banks whatsoever in Brooklyn and a limited presence in New York City.

Let me understand this, because it doesn't seem to pass my smell test:

Barclays couldn't simply have bought Lehman Brothers, for any price? Lehman's CEO Dick Fuld thought a Korean bank's offer was insultingly low--so he declared bankruptcy, giving the shareholders NOTHING? Lehman couldn't have been sold for any price, at any time?

One day after Lehman declares bankruptcy, Barclays buys the best of Lehman? A bankruptcy judge approves it? IN ONE DAY?

That must be some 24 hours! It takes me more than a day to buy a car. It took me over a month to sell my Manhattan co-op apartment. It took me over a month to buy a house in Austin, Texas. But in one day, ONE DAY AFTER BANKRUPTCY, Barclays can snatch up the best of Lehman (one of the top four brokerage houses in the world), and a bankruptcy judge can instantly know that Barclays paid fair market value for all assets? One day!

Lehman is no more.

The 158-year-old New York City firm that had survived two World Wars and the Great Depression couldn't make it in the current climate.

It matters to all of us because of one thing--trust. If trust is gone in our financial markets, Wall Street is dead. Say goodbye to New York and to America as well.

My late father had known Arthur Levitt (the former SEC chairman is now on the Bloomberg Board of Directors) and had invested in Levitt's old company, Shearson. That Shearson stock later became a large holding in two very New York City stocks--American Express and Lehman.