Here are the docs on the PGE Park loan deal
The City of Portland released to us yesterday a copy of the $12 million five-year line of credit "facility" that it's taking out from Bank of America (its favorite private lender) to pay the city's share of the cost of the half-fast re-renovation of PGE Park by the Paulson family for "major league" (by U.S. standards) soccer. You can read the final B of A contract in all its glory here. We also asked for and received the agreement whereby U.S. Bank will parcel out the pork during construction, and the legal opinion that Harvey Rogers, the city's "special" bond counsel, gave on the financing. They are here and here, respectively.
When we recently posted about this pending transaction, we wondered whether the city would actually promise to take out a permanent loan at the end of the five years to pay off the B of A debt. We questioned whether such a promise would be enforceable. From our first reading of the final contract, it doesn't appear that such a covenant was made.
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Comments (6)
It gives you a warm, fuzzy math feeling, doesn't it?
I hope people saw the "60 Minutes" piece on Wall Street this past Sunday with author Michael Lewis. Here's a little something from the transcripts:
"Over a period of just a few months in 2005, Goldman Sachs got AIG to insure $20 billion worth of subprime mortgage securities that the ratings agencies had graded AAA. But in fact, Lewis says, the pools contained some of the worst "drek" on the market.
"Do you think the big banks like Goldman Sachs played AIG for a patsy?" Kroft asked.
"That's exactly what they did," Lewis replied. "I mean, I think even Goldman Sachs would admit that to themselves, which is saying something. Yes. Absolutely. Using the cover of, 'We're all big boys in this market,' the big investment banks have long sought to exploit their customers."'
Guess who was chief executive officer for Goldman Sachs, making a reported 37 million in 2005?
That's right - our minority owner of the Timbers.
But don't worry. Sam and Randy won't be patsies on this deal. The Paulsons like these guys 'cause they're so smart.
Oh, you could quibble that they've already given up an entire baseball stadium in the deal, but it's early.
Besides, maybe the pattern will repeat and Henry Paulson will join the Oregon government. Then he can ram through a bailout for the city and his son if or when this thing collapses.
Next it's just a matter of splitting the bonus money and giving everyone promotions. Then, we're on to the next big scam. One more time from "60 Minutes":
By the fall of 2008, with AIG and all of the big investment banks at some risk of going under, the government stepped in to bail out the very firms that had caused the crisis. A decision was made that AIG was too big to let fail, and that its gambling debts would be paid off 100 cents on the dollar and the company that benefited the most was Goldman Sachs.
"Do you believe it had anything to do with their political connections?" Kroft asked.
"It's hard to know. There's no proof. But it certainly didn't hurt. It certainly didn't hurt that the secretary of the Treasury was a former Goldman CEO. It certainly didn't hurt that a lot of the people at the table were former Goldman employees. It certainly didn't hurt that the air that everybody breathed contained the assumption that we can never do anything to harm Goldman Sachs. So sure, I mean, I can't really see how their political influence didn't have anything to do with it," Lewis said.
Posted by Bill McDonald | March 16, 2010 9:12 AM
Bank of America or U S National Bank
just curious
Posted by dave r | March 16, 2010 11:24 AM
By the way, page I-1 is missing from the Project Funding Agreement linked to this post. It should be PDF page 50, in what is currently a 54-page PDF. And based on what page I-2 says, page I-1 would be interesting to see.
Posted by Peter Apanel | March 16, 2010 12:50 PM
Bank of America or U S National Bank
Bank of America put up the money; U.S. Bank is in charge of disbursing it.
Posted by Jack Bog | March 16, 2010 4:16 PM
[i]Bank of America or U S National Bank[/i]
bad and badder
Posted by LucsAdvo | March 16, 2010 7:13 PM
Thank you for the report Bill McDonald.
I heard Michael Lewis on the radio.
Following is an interesting review on his book, "The Big Short"
http://www.mercurynews.com/books/ci_14704376?nclick_check=1
Posted by clinamen | March 18, 2010 10:46 PM