Fraud, Antitrust Investigation Involving JPMorgan, Jefferson County,Alabama

Mish reports:

Jefferson County Alabama is back in the news with a Fraud probe involving JPMorgan. The background for this story can be found in my April 12 post: Jefferson County Death Spiral Swaps.

The Largest U.S. Municipal Bankruptcy Looms in Alabama. What caused this mess is an interest rate swap Jefferson County officials entered into when they financed a $3.2 billion sewer cleanup. The strategy backfired, demonstrating the speculative, risky nature of swaps.