Daily News: January 23, 2012

Government Probe Sought in Harrisburg Receivership Case

ccording to an article that appeared in The Bond Buyer, a recently released report based on an audit of bond deals largely responsible for driving Harrisburg into insolvency has prompted a request for a federal investigation into the transactions.

The article noted that a city council member issued the latest call after the Harrisburg Authority released a report that scattered blame for the fiasco that has left Pennsylvania’s capital $310 million in debt and under state receivership.

The U.S. Department of justice is being asked to investigate bond financings in 2003 and 2007, as wells as a $25 million loan from CIT Group to finish the incinerator retrofit project.

To read the full article posted on The Bond Buyer, click here.

Previously on abfjournal.com:

Federal Judge Voids Harrisburg Bankruptcy Filing, Monday, November 28, 2011