Boston Herald: MBTA Lost $55 Million in "Interest Rate Swaps"

Memo to the T: Instead of engaging in "interest rate swaps" to decrease your budget deficit, how about just trying to run the commuter rail lines, transit trains and buses on time and to a budget? Would that be THAT difficult to do?

Read more about how the T spent $86 million in making "investments" at firms including Bear Stearns and Lehman Brothers, yet only netted $31 million from the Wall Street money houses.

Now will the legislator and the governor do something to reprimand the T? Who knows!!

State Auditor Joseph DeNucci said that the T got a little "too creative" with their financing.

Of course, since the T cannot admit that they make ANY mistakes, they're defending their investing practices. However, DeNucci had this to say:

The rate swaps were highly speculative, risky and complex, and have proven costly to riders who are paying increased fares and taxpayers who subsidize the MBTA.

What utterly stupid shenanigans.

Our elected officials should be investigating this AND cleaning house at the MBTA. There have got to be better financial managers and better transit leaders out there.