Philadelphia Swaps Cost Taxpayers $331 Million, Report Says
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Philadelphia and its school district have lost a combined $331 million on interest-rate derivatives known as swaps, and the city stands to lose $244 million more, the Pennsylvania Budget and Policy Center said in a report.
Losses came in the form of net interest payments and cancellation fees related to derivatives negotiated with banks that included Wells Fargo & Co., Morgan Stanley and Goldman Sachs Group Inc., the Harrisburg-based nonprofit organization said today in the report. It examined financial audits, bond documents, and historical interest rates of variable benchmarks.