Courtesy Citybizlist – Fortune Magazine writer Katie Benner penned a recent article headlined, “Baltimore: the city that sues the banks.”
She was trying to ascertain the impact of the Libor scandal (where some banks are alleged to have manipulated interest rates) on cities and municipalities.
“One might think that low rates would help a borrower, just as they help a mortgage or credit card holder, but in this case the opposite is true. Baltimore is not a rich town. The triple punch of the credit crisis, housing crash, and recession has forced the city to choose. Fire departments or afterschool programs? Police or libraries? As the first municipality to seek reparations in response to this alleged scheme, Baltimore was my destination to see how the Libor scandal was playing out.”