{"id":5596,"date":"2014-03-04T00:00:00","date_gmt":"2014-03-04T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/03\/detroit_mi_to_pay_ubs_and_bank"},"modified":"2022-05-05T12:02:51","modified_gmt":"2022-05-05T17:02:51","slug":"detroit-mi-to-pay-ubs-and-bank","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/detroit-mi-to-pay-ubs-and-bank\/","title":{"rendered":"Detroit, MI to Pay UBS and Bank America $85M Over Interest Swaps Settlement"},"content":{"rendered":"\n

The city of Detroit has agreed to pay Bank of America Corp.\u2019s (BAC)<\/a> Merrill Lynch (MER) <\/a>and UBS AG (UBSN)<\/a> $85 million as part of a settlement to end interest-rate swaps, which taxpayers have had to pay over $200 million for in the last four years. Now, US Bankruptcy Judge Steven Rhodes must decide whether to approve the deal.<\/p>\n

The swaps involved are connected to pension obligation bonds that were issued in \u201905 and \u201906. They were supposed to protect the city from interest rates going up by making banks pay Detroit if the rates went above a certain level. Instead, the rates went down, and Detroit has owed payments each month.<\/p>\n

Under the swaps deal, the city owed $288 million. The settlement reduces the amount by 70%, which should help, as Detroit had to file for protection last year over its $18 billion bankruptcy.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The city of Detroit has agreed to pay Bank of America Corp.\u2019s (BAC) Merrill Lynch (MER) and UBS AG (UBSN) $85 million as part of a settlement to end interest-rate swaps, which taxpayers have had to pay over $200 million for in the last four years. Now, US Bankruptcy Judge Steven Rhodes must decide whether […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3752,3972,3755],"tags":[],"class_list":["post-5596","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-financial-firms","category-swap-transactions","category-ubs"],"yoast_head":"\nDetroit, MI to Pay UBS and Bank America $85M Over Interest Swaps Settlement — Investor Lawyers Blog — March 4, 2014<\/title>\n<meta name=\"description\" content=\"The city of Detroit has agreed to pay Bank of America Corp.\u2019s (BAC) Merrill Lynch (MER) and UBS AG (UBSN) $85 million as part of a settlement to end — March 4, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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