Baltimore is suing 10 major banks, alleging they illegally inflated interest rates for particular bonds for public works, overcharging Baltimore and other municipalities by billions of dollars, reported Reuters.
The city is seeking class-action status for the federal antitrust lawsuit, claiming the banks inflated costs for the city and other local governments, which Baltimore seeks to represent. That takes money away that could be spent on schools, police, roads, sewer lines and the like.
Baltimore, which has issued more than US$260 million of the bonds, alleges the banks “conspired in a coordinated and confidential scheme” from at least August 2007 to June 2016 to collect billions in unearned fees from the city and others on the bonds, which are used to pay for major, long-term city infrastructure projects.
Full Content: Reuters