Wall Street made over $110 million from Chicago schools, report says
The Wall Street Journal reports Wall Street made millions from Chicago’s struggling schools.
The report says J.P. Morgan Chase & Co. and Chicago-based Nuveen Asset Management have made and realized paper profits exceeding $110 million on purchases this year of $763 million in Chicago Public School bonds.
The school system has said it needed the money to replenish its dwindling coffers before the new school year and to build and repair facilities.
The terms of the bond sales highlight the choices the school district faces after years of pension shortfalls and relying heavily on borrowing.
A J.P. Morgan spokeswoman says the bank views the school board as a high-priority client that it understands well and is willing to support its short- and long-term capital needs.