Greetings from Subprime County

dixiehack · Feb 29, 2008

You know those billions of dollars we borrowed a while back. Yeah, we kinda have no clue if you'll ever see your money again.

http://blog.al.com/spotnews/2008/02/county_issues_warning_on_debt.html

Jefferson County told creditors in a filing Thursday night that it could offer no assurances it can meet its sewer debt obligations.

In two securities disclosure documents, the county said:

Soaring interest rates mean it may not be able to make payments on $3.2 billion in sewer bonds.

It may not be able to post $184 million in collateral required when credit-rating agencies lowered the grade for its interest-rate swap agreements.

Its sewer debt service reserve fund was now underfunded because of the credit downgrade, and the county could not guarantee it could properly fund or insure it.

The credit rating for $1 billion in school construction bonds, backed by a 1 percent countywide sales tax, had been downgraded from AAA to AA by Fitch Ratings Ltd., one of three major credit-rating agencies. The other two credit agencies, Standard & Poor's and Moody's Investor Services, put the school bonds on credit watches.

On the sewer debt, the county must come up with the $184 million as collateral on its swap agreements by March 7 or find a firm willing to insure that the cash-strapped county will pay its obligations, the documents said.
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goalmouth · Feb 29, 2008

Can a sewer be repossessed?

Pastor · Feb 29, 2008

goalmouth said:

Can a sewer be repossessed?
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Would you want to?

93Devil · Feb 29, 2008

This kills their Bond rating.

This county's government will not be able to build anything for a long time.

I hope they do not need to build a school anytime soon.

dixiehack · Apr 30, 2008

And to the surprise of no one, one of the leading dipshits behind this mess, former county commissioner and now chief street hustler Birmingham mayor Larry Langford, gets hit with an SEC civil lawsuit. Over/under on the criminal charges is probably Father's Day.

http://blog.al.com/spotnews/2008/04/sec_files_civil_complaint_agai.html

The U.S. Securities and Exchange Commission today filed a federal civil complaint against Birmingham Mayor Larry Langford, Montgomery banker Bill Blount and lobbyist Al LaPierre, claiming Langford received benefits in exchange for county bond business.

The SEC, in the action filed in Birmingham federal court, accuses Langford of accepting more than $156,000 in cash and benefits from Blount in exchange for helping Blount's firm, Blount Parrish and Co., obtain $6.7 million worth of county bond and financial business between July 2002 and August 2004. Read the filing here

The SEC also accuses Langford of obtaining help from Blount and LaPierre to secure and later pay off personal bank loans. LaPierre is accused in the civil action of receiving $219,500 from Blount to help obtain the county's financial business from Langford.

LaPierre has denied receiving payments from Blount related to Jefferson County bond business. But the SEC complaint cites three county financial deals in which Blount paid LaPierre for his help with Langford in 2003 and 2004.

The SEC lawsuit against the three describes the longstanding friendships Langford, Blount and LaPierre shared, and describes how they worked together to deliver county financial business to Blount and cash and benefits to Langford. Langford served as County Commission president starting in 2002 until last year, when he was elected Birmingham mayor.

As commission president, Langford shepherded most of the county financial deals that the SEC began investigating in 2004.

From today's Birmingham News: Birmingham Mayor Larry Langford blasts U.S. Securities and Exchange Commission, accuses it of smear campaign

Reached by telephone today Langford said he was amazed the SEC would file a civil action against him. "They are anxious to destroy my reputation," he said. "They're doing this knowing that I passed a polygraph test that showed I did nothing wrong."
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three_bags_full · Apr 30, 2008

They wanted his sorry ass ... they got him.

slappy4428 · Apr 30, 2008

93Devil said:

This kills their Bond rating.

This county's government will not be able to build anything for a long time.

I hope they do not need to build a school anytime soon.
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Actually, they are in the process of building several. had a 1 percent sales tax for years earmarked for building fund and they are building schools all over. The extra money, however, is in the midst of being hijacked by the county commission for the sewer bonds.

And Larry Langford can't go to jail fast enough... carpetbagging dumbass

BigRed · Apr 30, 2008

I still can't believe the city of Birmingham elected him as its mayor..... I know, I know, it's Birmingham, but the guy couldn't even run a theme park. He decided to start a amusement/water park - VisionLand, he called it - in one of the worse areas of town (one of my wife's friends dubbed it "Rides, Slides and Homicides). And he ran that bad boy into the ground before another amusement park company rehabbed and rescued it.
I'm just dumbfounded that B'ham trusted him to run their city.

slappy4428 · May 1, 2008

BigRed said:

I still can't believe the city of Birmingham elected him as its mayor..... I know, I know, it's Birmingham, but the guy couldn't even run a theme park. He decided to start a amusement/water park - VisionLand, he called it - in one of the worse areas of town (one of my wife's friends dubbed it "Rides, Slides and Homicides). And he ran that bad boy into the ground before another amusement park company rehabbed and rescued it.
I'm just dumbfounded that B'ham trusted him to run their city.
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You shouldn't be.. he promised them everything and has never come up with a way to fund it...
He spends more on credit than I do

westcoastvol · May 1, 2008

Wow, Dixie, I thought you were posting from Riverside County (Hi, Tiger!).

novelist_wannabe · May 1, 2008

Wait, is Langford Alabama or Auburn?

dixiehack · May 1, 2008

novelist_wannabe said:

Wait, is Langford Alabama or Auburn?
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Langford is for Langford. He'll take whatever side you want, just as long as the check clears.

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Greetings from Subprime County

dixiehack Well-Known Member

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Greetings from Subprime County

dixiehack Well-Known Member

goalmouth Well-Known Member

Pastor Active Member

93Devil Well-Known Member

dixiehack Well-Known Member

three_bags_full Well-Known Member

slappy4428 Active Member

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