Mayor Rahm Emanuel blinks — again — on city borrowing

The Chicago Sun-Times reports:

For the second time this week, Mayor Rahm Emanuel on Wednesday did something he seldom, if ever, does: made a concession to the City Council on a major issue pivotal to city finances.

At the request of the anti-Emanuel Progressive Caucus, Emanuel shrunk his massive borrowing plan—by another $200 million–to ease concerns about lucrative swap termination fees paid to major banks.

Chicago has already paid $250 million in similar penalties over the last five years. The $200 million in water revenue bonds dropped for the time being were billed as the last “variable rate conversion” involved in terminating those complex deals dating back to former Mayor Richard M. Daley’s tenure. It would have paid the banks at least $100 million more.

The struggles of Blue America.