The SEC has charged Banc of America with fraud for rigging municipal bond sales with dummy bids, defrauding hospitals, schools, and other state-run organizations. The bank will pay $137 million to settle these charges.
Municipal ledger hounds are worried that local governments will slash services as the imploding housing market chokes off access to lucrative property tax revenue. The New York Times visited the future retirement destination of its readers, South Florida, to see firsthand the devastating affect the subprime meltdown can have on communities. For anyone who says “What housing crash, my community is fine,” hop across the jump for a look at your potential future.