SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Mayer Brown loses state bond contract

Monday, Jan 13, 2014

* Ormsby

Governor Pat Quinn’s Office of Management today announced that it has selected a new law firm to serve as the state bond counsel, dumping its current counsel, Mayer Brown.

The Quinn Administration has selected the law firm Chapman & Cutler.

In a story broken by Capitol Fax’s Rich Miller, Mayer Brown’s former chairman and current partner, Ty Fahner, got embroiled in a controversy last summer over seeming to claim in a speech, which was recorded, that he had encouraged Wall Street ratings agencies to downgrade Illinois’ credit score over the state’s financial problems. […]

Now it seems that Mayer Brown, which won the contract in 2011, has paid the price for Fahner’s claims, which he later attempted to walk back – losing at $1 million in bond fees that come with being the state’s bond counsel.

In addition to Mayer Brown, Chapman & Cutler beat out 12 other firms to snag the contract.

- Posted by Rich Miller        


15 Comments
  1. - Oswego Willy - Monday, Jan 13, 14 @ 10:29 am:

    “Welp. Sorry guys, I though no one was paying attention when I sunk our business opportunity,” says Ty Fahner, only worried about the Firm, and not the damage Ty Fahner, himself, did to the state of Illinois.

    They should call Bruce Rauner to see what other states and governors are pigeons in the bonding game…


  2. - wordslinger - Monday, Jan 13, 14 @ 10:31 am:

    Karma comes around, Ty.

    Chapman and Cutler is the universally acknowledged heavy hitter among law firms in the muni business. They’re the experts in the field.

    Clout-heavy firms that land muni business often farm out the real work to Chapman and Cutler.

    If you really need outside counsel to issue state GO and revenue bonds (and I don’t think you do), they’re the ones to do it.


  3. - langhorne - Monday, Jan 13, 14 @ 10:34 am:

    bye bye ty. words have consequences.


  4. - Toure's Latte - Monday, Jan 13, 14 @ 10:45 am:

    The state bids out a small construction job and three companies bid, one from Montana, one from Tennessee, one from Chicago.

    The Company from Montana tells the state liaison their bid of $900- $400 for labor, $400 for supplies, $100 profit. The TN company tells him the bid is $700- $300 labor, $300 supplies, $100 profit.

    The Chicago company bids $2,700 and wins the contract- $1,000 kickback for the state liaison, $1,000 for the company profits, and $700 to hire the TN company to do the work…


  5. - For Whatever It's Worth - Monday, Jan 13, 14 @ 10:56 am:

    Good!


  6. - walker - Monday, Jan 13, 14 @ 10:56 am:

    We shouldn’t need these folks either.

    These are standard issues, using standard documentation, marketed by those who do this for a living. Their only real costs are clerical, not special legal expertise.

    I hope we’re paying them truly minimal fees.


  7. - Arthur Andersen - Monday, Jan 13, 14 @ 11:16 am:

    Why wasn’t Quinn using Chapman & Cutler in the first place?


  8. - wtf - Monday, Jan 13, 14 @ 11:38 am:

    Guess Ty’s partner draw might be a wee bit reduced this year.


  9. - Jim'e' - Monday, Jan 13, 14 @ 11:56 am:

    walker, I guess we could say this about almost all outside legal counsel; just clerical, NOT. There is some skin in the game regarding a tax opinion and research on IRS regs. However, the fees are outrageous and unless the State is getting a fixed fee no matter the size of the bond issue, then it is a scam. For certain is the fact that the legal work on a $20 million bond issue is almost identical to the legal work needed on a $200 million issue,but often the fees charged are ten times as much or based on issue size. Issue sized fees are a scam.


  10. - slow down - Monday, Jan 13, 14 @ 1:06 pm:

    The folks at Mayer Brown that were actually invovled in the bond work are first rate. And wordslinger is correct, the folks at Chapman and Cutler are first rate as well.


  11. - Anonymous - Monday, Jan 13, 14 @ 1:38 pm:

    Instead of a rainmaker, Ty is a droughtmaker.


  12. - jim - Monday, Jan 13, 14 @ 2:25 pm:

    gee, does this come under the category of political retaliation? sure looks it. but it obviously can’t be because all the commenters would be outraged if it really was.


  13. - 47th Ward - Monday, Jan 13, 14 @ 3:35 pm:

    ===does this come under the category of political retaliation?===

    No, it comes under the category of breach of fiduciary duty. Fahner bragged about leading the effort to get Illinois bonds downgraded, costing us more money. At the same time, his firm was making money off Illinois borrowing.

    You don’t want to reward that sort of behavior Jim. That could get very expensive.


  14. - wordslinger - Monday, Jan 13, 14 @ 3:46 pm:

    Jim, was Mayer Brown entitled to state contracts for eternity? Especially when they were screwing their client in the markets?

    You guys with your entitlement mentalities.


  15. - paddyrollingstone - Monday, Jan 13, 14 @ 4:07 pm:

    It ain’t beanbag.


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* Long list of appointments by Gov. Rauner
* Question of the day
* *** UPDATED x1 *** The Democrats' budget time bomb is starting to explode
* State threatens to zap all Chicago GSA school funding
* Another optics problem
* This is why we can't have nice things
* Tiny, secluded county wants no part of ATV plan
* It's just a bill
* Feds drop drug conspiracy charges
* Governing ain't easy
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * iPhone wins big while Windows Phone runs on empty | Pocketnow Weekly 133 (Podcast)
        * Google Cellular, Apple Watch battery, Windows 10 comments & more – Pocketnow Daily Recap
        * The Week in iPad Cases: Backpacks from Spigen and iSkin, an OtterBox screen protector, and more
        * Improve your game of Go (or just keep playing) with this collection of apps
        * Apple's missing out on X: Where X is whatever isn't shipping yet
        * Apple and Samsung tied, Microsoft + Cyanogen, LG G4 & more – Pocketnow Daily
        * What is the future of Windows Holographic?

        * Five Best Personal Finance Books
        * “Silicon Valley” Cast Learns Where Silicon Valley Is
        * Latest Chrome for Android updates make your mobile life easier
        * Creddle Makes a Customized Resume from Your LinkedIn Account
        * The best Gmail client is Outlook? Really?
        * Hadoop’s new role: Adjunct data warehouse
        * Samsung Galaxy A7 To Launch in Malaysia This Month

        * James Shields is the biggest February item of baseball business
        * Sale 'speechless' at FGCU jersey retirement
        * Terrerobytes: More about the White Sox's fateful dinner
        * Rodon leads White Sox trio on list of Top 100 Prospects
        * Inbox: How will new-look Sox lineup affect Abreu?
        * Keith Law likes the White Sox (more than PECOTA does, anyway)
        * Which prospects will make the Top 100 cut?

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Snow piles on suburbs, cancelling events..
        * Gov. Rauner wants bureaucratic cuts in educatio.....
        * Sullivan advises Rauner to 'develop relationships'..
        * Republicans anxious to hear one of their own of.....
        * Rauner's road to savings filled with potholes..


        * Icy, snowy roads loom for Super Bowl travelers
        * Storm blankets Midwest in snow, creeps toward Northeast
        * Autopsies set for 2 bodies found in southern Illinois home
        * Man accused of causing wreck during freeway confrontation
        * Man gets 40 years for wounding officer during traffic stop
        * Hill delivers nail-biting 60-58 Illini win over Penn State
        * More than a foot of snow possible for parts of Midwest
        * Chicago police seize cocaine worth nearly $7M
        * Cubs legend Ernie Banks remembered for unwavering optimism
        * Southern Illinois town investigating suspicious fires

        * Observers await specifics in Rauner's first State of the State speech
        * Statehouse Insider: Rauner pension slide slides over some details
        * Bill to ban pure caffeine introduced in General Assembly
        * Rauner defends paying staff more than Quinn did
        * Local lawmakers named to paid committee positions
        * Decision looms on ATV facility in western Illinois park
        * 'Right to Try' bill would give access to experimental drugs
        * Top Rauner staff receiving higher pay than Quinn's
        * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
        * Rauner staff receiving higher pay than Quinn's

        * The paperless office is here, so why is Acco stock up?
        * Elected or apppointed? Pick your poison for Chicago Board of Ed
        * Governor to find out if Illinois is ready for 'right to work'
        * Rauner's CFO sharpens axe for Illinois budget
        * These fast-food chains are resisting the gluten-free craze


          * Snow's falling fast in Chicago, but a real blizzard is on the way
          * Man fatally shot, 3 others hurt in separate shootings
          * Bolingbrook man dies week after Lawndale shooting
          * Man rescued out of water at North Avenue Beach
          * Man, woman stabbed in separate incidents in Roseland
          * Amber alert: Effingham girl abducted, may be in Chicago area
          * Up to 14 inches of snow in the forecast: 'We have a lot of winter left'
          * Father, son hurt in accidental shooting in Marengo
          * Mother of murder victim: 'Nobody can hurt her now'
          * South Shore on track for express train in March


          * Jason Barickman
          * Latest Update: Springfield Area Expecting 3-6 Inches
          * Springfield Attorney Picked To Chair Illinois Gaming Board
          * Up To 8 Inches Of Snow Forecast For Springfield Area
          * Could Rauner's Spending Hold Derail New Train Routes?
          * Listen to State Week - January 30, 2015
          * Rauner Staff Receiving Higher Pay Than Quinn's
          * Rauner Defends Higher Staff Salaries
          * Unmasking Ernie Banks
          * Guzzardi Wants Parents To Be Able To Opt Kids Out Of Testing


          * Our Opinion: Rauner driving wedges instead of building bridges
          * Bernard Schoenburg: Campaign discussion — Oak Ridge to park district?
          * Sharmin Doering: Simulation helps local officials understand poverty struggles
          * Steven Simpson-Black: Human rights struggle continues 150 years after the 13th Amendment
          * Quote of the Day: Sunday, Feb. 1, 2015
          * Observers await specifics in Rauner's first State of the State speech
          * Statehouse Insider: Rauner pension slide slides over some details
          * Statehouse Insider: Rauner pension slide slides over some details
          * In My View: Remembering Mary Lou "Smokey" Schneider
          * Charles Krauthammer: Auschwitz, today


          * Asmussen: All-Big Ten All-Super Bowl Team
          * Daily Digest 2/1/15
          * Winter weather cancellations for Feb. 1, 2015
          * I-57 closed between I-74 and I-72
          * Winchester looking at affordable homes
          * After 2-3 inches of overnight; snow falling again in Twin Cities
          * Percy native gets behind the scenes look at Super Bowl
          * After 2-3 inches overnight; snow falling again in Twin Cities
          * Snow falling again after 2-3 inches overnight
          * Exelon: Legislative fix needed to avoid financial meltdown


          * Snow piles on suburbs, cancelling events
          * Autopsies set for 2 bodies found in southern Illinois home
          * Man accused of causing wreck during freeway confrontation
          * McIlroy wins Dubai Desert Classic
          * Storm blankets Midwest in snow, creeps toward Northeast

          * Rep. Bob Dold
          * Illinois District 10 Race
          * Illinois' Rauner tackles full transition a...
          * Democrats Court Ex-Congressman for Rematch
          * “Human trafficking for sexual exploitation...
          * Despite Deep Hole, Dems Optimistic About T...
          * Bob Dold
          * Rep. Bob Dold on Congress’ return to work
          * Incumbent Spent More than Winner in Illino...
          * Rep. Bob Dold

          * Distinguished pol of the week...
          * Tv news shows...

          * Redskins spent $180,000 lobbying to keep n......
          * Backlash over Boehner's Netanyahu Congress......
          * Netanyahu invitation shows GOP's disdain f......

          * We’ve moved!
          * In The Lyons Of Fire
          * BGA Backs New State Disclosure Effort
          * Budget Crisis Task Force Examines Illinois’ Debt Woes
          * To Cut Costs, Suburbs Eye Police Dept. Merger
          * State’s High Court Hears IG’s Case
          * Can We Trust The Infrastructure Trust?
          * Numbers Are In! Illinois Leads In Most Government Bodies
          * Check Out Chicago’s New Infrastructure Trust Bylaws
          * Municipalities’ New Frontier: Ending Local Debt Disaster


          * IDHS reminds eligible workers to take advantage of free tax help and the Earned Income Tax Credit (EITC) - More than 30 sites offer free tax services Statewide
          * IEMA, American Lung Association Launch Health House - Radon Excellence Program in Savoy - Two Champaign builders coordinating with Heyworth radon mitigator in program to reduce radon-related lung cancer risks in new homes
          * One Confirmed Case of Measles in Illinois
          * Governor announces latest round of agency appointments
          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around




              Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller