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Author Abdel-Khalik, A. Rashad
Title Brazen [electronic resource] : big banks, swap mania and the fallout / A. Rashad Abdel-Khalik
Imprint Singapore : WS Professional, an imprint of World Scientific Publishing Co. Pte. Ltd., c2019
book jacket
Edition 1st ed
Descript 1 online resource (xxvii, 523 p.)
Note Includes bibliographical references (p. 481-510) and index
For nearly two decades, countless non-profits in the U.S. were forced to pay big banks enormous sums of money to settle or terminate bilateral contracts known as Interest Rate Swaps (IRSs). Officials at non-profits had entered into these costly contracts unaware that each contract has only one winner, and that big banks did not intend to be the losers.The effects of such monetary transfers have been catastrophic. Money-strapped non-profits had to dismiss schoolteachers, shut off water supply to thousands of poor households, and downsize many other essential public services. Local and state governments, public school districts, universities, hospitals and transit authorities from New York to Los Angeles have been among the largest hit.This book presents selected cases and highlights the lack of evidence that decision makers at non-profits had fully understood the terms and complexities of IRSs. The evident unequal bargaining power thus gives rise to the high likelihood of unconscionable contracting. Additionally, for terminating these contracts, big banks collected huge sums of money for services that had not been, and will never be, rendered. Accordingly, questions arise as to whether these termination payments are tantamount to unjust enrichment
Description based on print version record
Subject Banks and banking -- Moral and ethical aspects -- United States
Nonprofit organizations -- United States -- Finance
Swaps (Finance) -- United States
Public welfare -- United States
Electronic books
Alt Title Big banks, swap mania and the fallout
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