Economy and Finance
Bank Analyst Who Told Truth About Bankrupt Municipal Bonds to Be Probed By Congress for Billion Dollar Sell Off
The Financial Services and Bailouts of Public and Private Programs subcommittee, chaired by Rep. Patrick McHenry, might subpoena Whitney, whose prediction of potential defaults totaling “hundreds of billions of dollars” is widely blamed for the recent selloff in municipal bonds.
From Dow Jones:
Meredith Whitney has been called to appear as a witness at an upcoming hearing by the U.S. House TARP oversight subcommittee, Fox Business Network’s Charles Gasparino reported Thursday.
Gasparino cited sources as saying the financial analyst, whose prediction of potential defaults totaling “hundreds of billions of dollars” is widely blamed for the recent selloff in municipal bonds, has declined the offer to appear at the Feb. 9 hearing.
The Financial Services and Bailouts of Public and Private Programs subcommittee, chaired by Rep. Patrick McHenry, might subpoena Whitney and the report in which she apparently made the prediction, Gasparino said.
Attendees at the hearing will include “experts who disagree with” Whitney’s call, according to Gasparino.
We are not sure how this will change the fact that most municipalities are, in a word, insolvent.
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