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Port Authority on the hook for $150 million payment on risky swaps
The Port Authority of New York and New Jersey could be forced to pay out more than $150 million this year on a pair of complex and risky investments originally designed to save the agency money.
The investments, known as interest rate swaps, have been on the Port Authority’s books since 2007 and have been losing the agency money almost since the day they were entered into. But in 2009, in an effort to buy time in hopes that the investments would become profitable, the agency renegotiated the deals with the investment banks on the other side of the transaction. (Isherwood, PolitickerNJ)
