bonds

Senator Steve Oroho, a Republican member of the Senate Budget and Appropriations Committee, said he doesn't understand how the Corzine administration can call the Republican complaint to the federal Securities and Exchange Commission "frivolous" when respected professionals in the investment community know that the complaint raises valid concerns.

Only Governor Corzine and the industry that peddled destructive subprime debt could believe it is 'frivolous' to disclose multibillion deficits and structural funding problems to the public and potential investors.

The governor Isn't Disclosing Fiscal Problems to Investing Public.

When New York almost went bankrupt, it brought in Felix the Fixer and created Big MAC to sell long term debt and beg for a federal bailout. Governor Corzine's fiscal mismangement may force New Jersey to do the same in the very near future.

The six Republican members of the Senate Budget and Appropriations Committee said today's testimony shows Governor Corzine has created a breathtakingly irresponsible budget that will inevitably result in crippling tax increases on New Jersey's middle class if he wins re-election.

Senator Joseph Pennacchio, a member of the Senate Budget and Appropriations Committee, sent a letter to Treasurer David Rousseau seeking details of Governor Corzine's plan for refinancing state bonds. The governor's 2010 budget includes $361 million in "savings" from an unspecified debt restructuring. The treasurer has so far provided no details of how much debt will be restructured, how it will be accomplished or how much it will cost taxpayers.

SCHAER CALLS FOR FEDERAL RULES PREVENTING
BOND FIRMS FROM DUAL ROLE
Will Engage Governor and Federal Regulators to Prevent Firms
From Acting in Dual Capacity As Investment Banker and Investment Advisor

(PASSAIC) - Assembly Financial Institutions and Insurance Committee Chairman Gary S. Schaer today called for new federal regulations to prohibit firms which engage in investment banking in the public sector from acting as an aftermarket investment advisor to other customers for the same or similar securities.

On behalf of the thousands of taxpayers and investors who are members of Americans for Prosperity-New Jersey, I’m writing to express grave concern over your company’s ratings practices regarding bonds issued by the New Jersey Economic Development Authority under contract with the State of New Jersey. As the courts have made clear, these bonds are not backed by the full faith and credit of the state of New Jersey, and there is no guarantee that future legislatures will appropriate the funds to service the bonds.

Americans for Prosperity New Jersey Director Steve Lonegan held a news conference today to protest the irresponsibly high rating of risky New Jersey contract bonds by Moody's Investment Service. Lonegan was joined by a busload of New Jersey taxpayers and a giant inflatable ATM machine, which was designed to illustrate that taxpayers shouldn't be treated like an instant cash machine when politicians run out of money. Watch the press conference video.

            Senate Republican Leader Leonard Lance (R-Hunterdon/Warren) reacted to yesterday’s issuance of $423 million in new and restructured 2007 Motor Vehicle Surcharge Revenue Bonds by the New Jersey Economic Development Authority.