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-- federal and state battle over billions in pension holes so the SEC today charged Illinois with fraud.
For missed leading municipal bond investors about its unfunded pension liabilities will be -- agreed to settle the charges obviously.
And -- pay no penalty which is a shocker joining us now for more on this Fox News senior judicial analyst doesn't bother -- Juts out and nothing to -- -- on their.
Nothing same thing happened with your home state in my -- measures in 2010.
I mean basically the SEC said to New Jersey and then said -- Illinois earlier today.
You committed fraud by marketing securities getting people to lend money to the state.
Without revealing to them the true nature of the risk.
Attendant upon that lending because you're not bringing in enough income to guarantee the payment of debts and that repayment of the loans -- New Jersey was accused of having done that -- signed an agreement saying you know we didn't belong to would again.
Illinois accused of doing it and it's signed an agreement saying we're -- -- my -- again I'm having SEC does not treat -- banks are private lenders who who trade publicly.
With the same kid gloves but it does a government because of it took money from the government will be taking money from.
The tax payers and the purpose of this investigation is to protect the taxpayers so it it's really I catch 22 the best thing SEC can hope for.
Is to make lenders aware of the fact.
But the states will lie and and sheet and -- fraud.
So you need to look before you leap and it will embarrass the states into revealing what was done.
But no sanctions.
Will be assessed they'll find will be levied nobody goes to jail -- -- -- -- -- visual similarities in not doing it right and you have to admit it basically but it doesn't have any teeth -- is that correct them think about how ridiculous this is the federal government.
Has found fraud on -- part of one in the states in the manner in which are treated people who contrasted their money -- states.
It doesn't identify the names of the people who committed fraud it doesn't make them pay the money back -- just says.
Don't do it again.
There's got an eleven was scratching their heads saying we have to change -- well if if someone does lose money as a result of what the SEC uncovered with respect Illinois.
There's a treasure trove of material that the SEC uncovered for the lawyers.
For those who lost the money.
And that information can be used by those lawyers in the lawsuit against the state.
But if nobody loses money or nobody sues or the state of Illinois borrows from one column in order to make another column looks solvent.
Then there will be no lawsuit and will be no further acts -- if anything happened in Jersey where there any repercussions.
Janelle you know -- -- -- very good question was the same type of thing we ring to it again looked at it it's not really -- -- Toothless what it does is shine a light on the careers of people we can figure out who they are -- right right public.
Publicly who cause this to happen.
And it basically says to institutional and individual lenders look before you leave constant don't just assume that because -- say a state government that the tellingly for a municipality regulated -- -- -- that they're telling the truth about the cash is gonna be there right when the bond comes due for redemption.
And that it's crazy -- his name has custody -- that 65% as supposed to base most of it.
They war they war.
Right jet engine of hot and I'm so glad you're here for back at this mine it's disturbing as it is and I thank you judge well --
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