You're watching...
Rolling Stone’s Matt Taibbi on his latest piece surrounding the prosecution of companies that rigged bond auctions around the country.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Now.
And now its municipal bond bid rigging is this thing I'm working on -- days.
And I -- -- -- -- were held on his program but the stuff we're -- just too boring for you ought to just expect are -- your -- to read -- write about it a -- some.
Rate -- another is and I like -- on.
This because everybody on the Fox Business -- -- Improve voter roll on down they'll hate you yes Austria and origination date June if it is because -- were here is -- like shed a spotlight.
Bottom bunch are cockroaches.
Are just incredible Lou Dobbs and our instantly -- governor for the rich friends on -- Wall Street.
-- -- exercise about a direct Ronald absolutely -- perhaps they thought I thought -- preference so so want to build -- -- So yeah -- -- covers trial that went on earlier this month here.
New York it was a federal trial against -- a trio of executives who works for your old company achieved.
And they were involved in -- U wide ranging scandal that.
Basically.
Included.
Pretty much every major bank not only in America but I in Europe as well.
And all these I think a lot of -- what are layer of C mean I don't know I don't know this is do this is three guys you've never heard of -- default basis called -- -- open USA vs -- -- Graham and Goldberg.
It -- -- and sort of medium level executives and a subsidiary of General Electric.
And what they were doing was they were reading the auctions for municipal bonds serviced.
And it turns out.
As you listen to this of the proceedings this -- it literally every single bank.
In international finance is involvement scams and rip off.
Cities and towns and every -- any of every state of America.
To the tunes of tune of many billions of dollars it's it's it's impossible to calculate how much money -- -- but they were all involved in this and this is a scam that's very much like -- -- obviously do with.
Garbage collection and our construction their their reading the reading auctions for public service and that's exactly what they -- doing here and it's been going on for well over a decade and -- to scratch the surface of it now.
And are gonna -- -- but -- Bernie doesn't story about.
Six -- ball one half or some other pretentious twit who lives -- on the upper west side of Manhattan because I have an apartment.
And upper west side of Manhattan and I spend some of the year there although I'm.
The New Mexico this morning it drags me into it.
So then you or your command news or spend more supportive as -- -- careers and minute know.
I know you you absolutely have been -- legislature and what is considered ideal way.
Anyway.
To mention that I used to work Virginia.
What I thought you would take some some and some.
Pleasure in the fact and distracting and year old bus is -- and that wrong or no I have fond memories from.
All the privileges emotional problems -- OK what I -- and -- then that this story.
-- the missiles almost like the first some -- hearing about it yes let's -- you judges have a Midland attention.
None you're it's not that you haven't been paying attention -- that nobody's really heard about it this has been.
The them the first company ZR rated -- scandal this is all the way back in 2006 and it's gonna instantly connected member there was.
A priest scandal involving Bill Richardson.
When you -- name commerce secretary.
This is sort of connected to battle business -- Richardson.
Was accused of taking bribes.
From this company called -- -- And CDR as a middleman company that executes these auctions of municipal bonds.
And he was -- -- episode was brought up at this trial.
But what's come out in the interim.
Is that it's not desist isolated.
Episode involving one company you're a couple of companies it's literally every major bank in the world has been doing this.
To every state in the union for well over a decade.
Bank of America got find last year chase.
UBS.
Wells Fargo.
And and a whole host of other European and American banks have been dragged into this thing so essentially if your town or city.
Borrowed money to build you know a new school Laura park or you know hockey -- you probably got ripped off.
I you know couples 3% on that deal and not all that money has been going into it attribute before.
Beach houses and bonuses and other stuff.
-- -- But almost nobody cares about it and and other that's exactly right the stuff it's it's it's so boring and so.
American and so esoteric and so complicated.
That is hard for the public to wrap their heads around -- when I was actually watching a trial he could see the jurors really nodding off their like trying to stay awake in the middle of of the trial because.
You had to actually learn a whole new language.
And to even understand what these people were talking about -- guys in this case.
Their companies were recording them while they were reading news auctions by telephone.
So all these felonies are being captured on tape.
But even so it was impossible to decipher what was going on because there are essentially talking encoded they invented their -- their own little jardin now about how to do this.
And you could be listening to its renowned for hours and hours -- -- and not know what was going on so -- it's it's very very difficult stuff for people to understand.
The important thing is just to realize that you been ripped off and that that's what's gone on here talking -- -- -- -- rollers on magazine.
It's -- there are back -- some for a second imagine am from my friend former governor and Mexico.
Taken bribes disarm ever -- terminal there infected dead -- You type a crimes yet well in this case you know one of their one of the people who have been who worked for this company CD OR NC -- basically.
If you want -- if you're the town and you wanted to.
Issue a bond.
You would hire CPR.
To two orchestrate the auction -- larger bond OK so unfortunately but every -- -- Richardson took bribes from company well they had a guy and it's from two from Citi are testifying at this case.
Who said that he handed.
Richardson envelope with a 25000 dollar check in it and in return for that I've Richardson says -- -- the big guy I'm gonna hire him.
The big guy meaning the boss of CDR's and I was pretty damaging testimony for Richardson definitely.
-- --
