CPS did lose money in derivatives deal with Lehman Brothers... Did CPS officials lies to public about risky investment losses?
Ohanian Comment; You may think you have no reason to care about the budget of the Chicago Public Schools budget, but think again. Thanks to Substance, we can learn a lot about school districts work. Paying attention to footnotes is one important lesson.
In Chicago, only Substance covered all three days of the Chicago Public Schools budget hearings. George Schmidt was there when Whitney Young High School teacher Jay Rehak asked how much money was lost dues to investments in derivatives through Lehman brothers. The answer was none.
Read on, and find out how George Schmidt's due diligence has broken a big story, and as you read, ask yourself what else Chicago Public Schools officials are lying about. Then extend it and think about how your school district operates and what they lie about.
And send Substance a contribution.
George N. Schmidt
Top officials of the Chicago Board of Education, including the Board's treasurer and the Board's budget director, either misled or deliberately lied to the public on August 18, when they denied that Chicago's public schools had lost in excess of one million dollars because of risky derivatives trading through the now bankrupt Lehman Brothers in the years since 2007. After being asked about the Board's dealings with Lehman Brothers during the recent hearings on the Board's proposed 2009 - 2010 budget, CPS officials tried to deny that the Board had suffered losses because of risky derivatives trading through the now bankrupt investment bank, Lehman Brothers, beginning some time in the middle years of this decade. Although the proposed budget noted a serious drop in what the Board calls "investment income", CPS said the drop was due to general market forces and not because of risky investments.
Read the rest of the story here.
George N. Schmidt