March 5, 2009 - 12:49 am
News Feed: Massachusetts

Arr, Press-Gang a-comin' fer the pirate ship "Swaptions"

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Say goodbye to your loved ones, mateys, and hoist the Jolly Roger: we're headin' out to sea on the good ship "Swaptions." The Commonwealth is about to assume liability for the Turnpike's potential $363-470 million contribution to the bonus pool at Swiss bank UBS. State House News Service reports:
The Senate on Wednesday gave preliminary approval to House-passed legislation reinstating the state's credit backing behind a risky turnpike authority debt financing deal that is costing the agency $25 million this year and could force a one-time payment to the firm UBS of $363 million.

The bill is scheduled for full debate Thursday, as lawmakers look to take a step they hope will avert the payment, which UBS will be entitled to demand should Standard and Poor's further lower the credit rating of turnpike insurer Ambac Assurance Corporation.

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