Goldman Sachs 33 Year Stranglehold on Nashville

Goldman Sachs and Nashville will boost city-backed debt by almost 40 percent to borrow $633 million for a new convention center.

A riverboat gamble with very little upside?

The city plans to pay off the debt over the next 33 years with a series of revenue streams targeting visitors to Nashville. But it has pledged to use a $130 million-a-year pool of general fund revenues — excluding sales and property taxes — if there's a shortfall, as critics expect based on the struggles of convention halls around the country. 

Metro payments on the debt will average $39 million to $40 million a year. {more}

Lucky for Nashville, the municipal bonds for the center were sold before the SEC civil suit against Goldman was announced.

"I think Nashville's convention center deal is just another example of how elected officials are induced to approve a financing with promises that the public's guarantees will never be necessary, that the project will pay for itself," said council member Emily Evans, who used to work on the other side of the dais in the municipal bond business. "Yet once the votes are counted, the city's assumption of risk becomes a major sales point for investors, and protecting the taxpayer is forgotten."

Goldman, Sachs is the book-runner for {the bond} offering. Other members of the syndicate are Bank of America Merrill Lynch, Fifth Third Securities Inc., Harvestons Securities Inc., Mesirow Financial Inc., Morgan Keegan & Co., Morgan Stanley, and Stephens Inc. {more}

The Goldman Defense: Caveat Emptor 

The essential thrust: buyer beware.

Did Goldman scam the Nashville politicians into a heavy debt for a convention center that will rely on an economy improving to past peak levels in order to pay off the debt with extortion fees to visitors to the city?

Will taxpayers be the losers because revenues will be way short of the Goldman projections? Cutbacks to city services to service the debt? Goldman would love to have Nashville as one of its 'assets.'

Play with the devil and you may get burned. Buyer beware indeed.

Goldman Sachs 33 Year Stranglehold on Nashville

Goldman Sachs and Nashville will boost city-backed debt by almost 40 percent to borrow $633 million for a new convention center.

A riverboat gamble with very little upside?

The city plans to pay off the debt over the next 33 years with a series of revenue streams targeting visitors to Nashville. But it has pledged to use a $130 million-a-year pool of general fund revenues — excluding sales and property taxes — if there's a shortfall, as critics expect based on the struggles of convention halls around the country. 

Metro payments on the debt will average $39 million to $40 million a year. {more}

Lucky for Nashville, the municipal bonds for the center were sold before the SEC civil suit against Goldman was announced.

"I think Nashville's convention center deal is just another example of how elected officials are induced to approve a financing with promises that the public's guarantees will never be necessary, that the project will pay for itself," said council member Emily Evans, who used to work on the other side of the dais in the municipal bond business. "Yet once the votes are counted, the city's assumption of risk becomes a major sales point for investors, and protecting the taxpayer is forgotten."

Goldman, Sachs is the book-runner for {the bond} offering. Other members of the syndicate are Bank of America Merrill Lynch, Fifth Third Securities Inc., Harvestons Securities Inc., Mesirow Financial Inc., Morgan Keegan & Co., Morgan Stanley, and Stephens Inc. {more}

The Goldman Defense: Caveat Emptor 

The essential thrust: buyer beware.

Did Goldman scam the Nashville politicians into a heavy debt for a convention center that will rely on an economy improving to past peak levels in order to pay off the debt with extortion fees to visitors to the city?

Will taxpayers be the losers because revenues will be way short of the Goldman projections? Cutbacks to city services to service the debt? Goldman would love to have Nashville as one of its 'assets.'

Play with the devil and you may get burned. Buyer beware indeed.

Obama on 60 Minutes: "I Did Not Run For Office To Be Helping Out A Bunch Of Fat Cat Bankers On Wall Street"

But he sure took a lot of money from them for his campaign. Almost a million from Goldman Sachs alone.

His administration's economic team is a Who's Who of Wall Street Insiders.

A dog tends not to bite the hand that feeds him.









Video of Obama's 'bad banker' performance on 60 Minutes.


Mr. Obama is scheduled on Monday morning {Dec. 14} to meet with bankers to exchange ideas on ways to increase lending; to review the financial-industry regulatory bill moving through Congress; and to discuss bankers' compensation, the White House and industry representatives said.

Mr. Obama will meet with some of the country's top bankers, including Goldman Sachs Group Inc.'s Lloyd Blankfein, J.P. Morgan Chase & Co.'s Jamie Dimon, and Bank of America Corp.'s Ken Lewis. {more}


I wonder if they will discuss the latest scheme/scam of 'cap and trade.' I can see the bankers drooling/foaming at the mouth over the prospect of stealing a few more trillion dollars. They might even talk a little about a new carbon based currency for the world with Wall Street leading the way.

But this latest Wall Street/Federal Reserve endeavor wouldn't be helping the 'fat cats.' It would all be to 'save the planet.' Obama wouldn't lie about something as serious as that ... would he?

Obama on 60 Minutes: "I Did Not Run For Office To Be Helping Out A Bunch Of Fat Cat Bankers On Wall Street"

But he sure took a lot of money from them for his campaign. Almost a million from Goldman Sachs alone.

His administration's economic team is a Who's Who of Wall Street Insiders.

A dog tends not to bite the hand that feeds him.









Video of Obama's 'bad banker' performance on 60 Minutes.


Mr. Obama is scheduled on Monday morning {Dec. 14} to meet with bankers to exchange ideas on ways to increase lending; to review the financial-industry regulatory bill moving through Congress; and to discuss bankers' compensation, the White House and industry representatives said.

Mr. Obama will meet with some of the country's top bankers, including Goldman Sachs Group Inc.'s Lloyd Blankfein, J.P. Morgan Chase & Co.'s Jamie Dimon, and Bank of America Corp.'s Ken Lewis. {more}


I wonder if they will discuss the latest scheme/scam of 'cap and trade.' I can see the bankers drooling/foaming at the mouth over the prospect of stealing a few more trillion dollars. They might even talk a little about a new carbon based currency for the world with Wall Street leading the way.

But this latest Wall Street/Federal Reserve endeavor wouldn't be helping the 'fat cats.' It would all be to 'save the planet.' Obama wouldn't lie about something as serious as that ... would he?