A new study by a national transit coalition suggests that big banks are gouging transit agencies in cities across the country. At issue are variable rate or swap bonds that banks offered to more than 1,100 cash-strapped government agencies. The ReFund Transit Coalition says agencies are overpaying more than $500 million a year in taxpayer money to Wall Street bankers. It’s money that the group says is now draining transit agencies of funds desperately needed to keep mass transit rolling in the United States.
Pacifica KPFK’s Ernesto Arce has more from Los Angeles.