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.


* Chicago Teacher Pension Fund explains borrowing plan
* House comes up short on temp budget
* Emanuel announces more school cuts, possible tax hikes
* Rauner, Teamsters agree to new contract
* Chicago-style accounting
* Question of the day
* Always read the fine print
* *** UPDATED x1 *** An independent mind
* *** UPDATED x1 *** Rauner uses amendatory veto to strike legislative pay raises from BIMP bill
* Um... Huh?
* When "fundamentally wrong" becomes "greater flexibility"
* Ounce joins budget coalition statement
* Nuding urges thumbs down on one-month budget
* *** LIVE *** Overtime session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* 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 6s LTE-A, LG G4 Deals, Apple Music, Bloopers & more – Pocketnow Daily
        * Pebble Time vs. Android Wear (Video)
        * Xiaomi Sold 34.7M Smartphones In First Half Of 2015, Up 33% Year-On-Year
        * Android top in the US but not Europe; Galaxy S6 sales boost Samsung
        * Facebook quietly redesigns site logo with new font
        * Google Drive now works with custom maps from My Maps
        * Tegra X1 Chromebook might be happening, codenamed “Smaug”

        * NEC Unveils A New Rugged Windows 8.1 Tablet For Business Users
        * Xiaomi’s First Half Sales Put it Only a Third of the Way Toward 100 Million Phone Goal
        * Meizu MX5 Officially Introduced
        * Instagram yanked Talib Kweli's photo thinking it was 'hate speech'
        * Instagram yanked Talib Kweli's photo thinking it was 'hate speech'
        * It's time: Team USA challenges Team Japan to giant robot duel
        * DotA 2’s The International Prize Pool Hits $15 Million

        * Players value Double Duty Classic experience
        * Abreu more patient as pitchers adjust
        * Sale could face Buehrle if Sox shuffle rotation
        * Chicago panel offers lessons for on and off field
        * White Sox lookback, Part 2: WS Game 1
        * Jennings returns; White Sox option Guerra
        * After the glory: Paulie relishes second act

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


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

        Archives
        July 2015
        June 2015
        May 2015
        April 2015
        March 2015
        February 2015
        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


        * Temporary State Budget Plan Falls Short In Illi.....
        * Chicago school pension payment will be made: Il.....
        * Illinois Senate advances plan to increase schoo.....
        * Illinois governor vetoes pay raises for state l.....
        * House defeats 1-month budget; same bill coming .....
        * 1-month budget plan fails in House, battle cont.....
        * State legislators fail to secure temporary budg.....
        * UPDATED: Budget measure fails in House - Champa.....


        * Champaign man who admitted killing U of I student sentenced
        * Mayor: Chicago school cuts include layoffs, less maintenance
        * Illinois House defeats 1-month budget, battle continues
        * 2 red panda cubs born at Chicago's Lincoln Park Zoo
        * U of Illinois president puts raise talk off over budget
        * Emanuel won't detail what he knew on Clinton emails
        * Ex-Illinois women's basketball players sue school, coach
        * Illinois rainfall of 9.53 inches set June record
        * Property tax freeze, Chicago pension relief advance
        * Budget impasse shuts down program for troubled youths

        * State lawmakers point fingers over budget impasse; temporary budget in limbo
        * Former Illinois treasurer employees under Dan Rutherford sue over firings
        * Lawmakers point fingers over budget impasse; temporary budget in limbo
        * Illinois medical marijuana patients now number 2,600
        * Budget impasse shuts down Lincoln's Challenge program for troubled youths
        * Illinois House defeats 1-month budget; same bill coming from Senate
        * Rauner vetoes pay raises for state lawmakers
        * Illinois Senate advances plan to increase school funding
        * Illinois Senate committee advances plan to increase school funding
        * Democrats push 1-month budget; Rauner, GOP likely to oppose

        * McDonald's localizes menus with pulled pork, bacon McMuffins
        * House spikes emergency budget
        * Justice Department probes airline price collusion
        * Who likes a sales tax hike? Not too many
        * U of C, Little Company hospitals team up on pediatric center


          * Carnival worker charged in underage sex case
          * Former Illinois treasurer employees sue over firings
          * Alleged 'squatters' get boot, charges filed
          * City extends taxing power to online movies, music, more
          * Lawyer for woman accused of animal neglect: Rescued dogs weren't hers
          * Rauner and Democratic lawmakers show no signs of progress
          * Paralyzed cop says he's being evicted because city failed to pay bills
          * Man who admitted killing U. of I. student from Chicago sentenced
          * FBI: No injuries in Glenview bank robbery
          * F-18 with engine trouble lands safely at Midway


          * After pension payment, Chicago Public Schools to make $200M in cuts
          * CPS, Emanuel warn of deep cuts, layoffs to school district
          * After marriage equality, what's next for the LGBT movement?
          * The night Chicago politicians spent punching each other in the face
          * The legacy of Willie Dixon on his 100th birthday
          * Supreme Court rules all states must license and recognize same-sex marriages
          * Preckwinkle may reevaluate sales tax plan if Springfield acts on pensions
          * Democratic lawmaker 'mad as hell' over Rauner's veto of state budget
          * At eleventh hour, CPS makes huge pension payment
          * Contract talks break down between Chicago teachers and city


          * Bernard Schoenburg: Gov. Rauner's tone has changed, Sen. Andy Manar says
          * Our Opinion: Winslow looks to heal divisions in Springfield
          * George Will: Some GOP candidates becoming unhinged
          * Eugene Robinson: In Charleston, 'the power of God's grace'
          * State lawmakers point fingers over budget impasse; temporary budget in limbo
          * Former Illinois treasurer employees under Dan Rutherford sue over firings
          * Illinois medical marijuana patients now number 2,600
          * Budget impasse shuts down Lincoln's Challenge program for troubled youths
          * Rauner vetoes pay raises for state lawmakers
          * Illinois Senate advances plan to increase school funding


          * Beachey moves on from Centennial
          * UI roundup: Small misses out on PGA event
          * Birks: Europe trip was worth it
          * Illinois, North Dakota State will play in hoops
          * Asmussen: Heavy damage done to women's basketball
          * UPDATED: Budget measure fails in House
          * Reginald Scott Sentencing
          * Best of teams: No. 38, Penn State
          * Best of Illini: No. 38, Kenny Nelson
          * Illinois budget stalemate already taking toll


          * Kessel trade to Penguins highlights start of NHL free agency
          * Capitals lose Green, add Williams on 1st day of free agency
          * Walker homers twice as Pirates pound Tigers 9-3
          * AP Source: Kings trade Stauskas, Thompson, Landry to 76ers
          * Altuve helps Astros sweep Royals with 6-5 win

          * Friday City Trash Pick-Up Is On Thursday This Week
          * Chicago's Archbishop Comments On Supreme Court Decisions
          * Cantina De La Granja Slated For Late July Opening
          * Emanuel Provides Details On CPS Cuts, Possible Property Tax Hike
          * "Dispensary 33" Coming Soon to 5001 N. Clark
          * Durbin celebrates at Gay Pride Parade 2015
          * Illinois Senate Passes Temporary Budget
          * Illinois Senate Passes Temporary Budget (UPDATED)
          * Cullerton Introduces New Property Tax Freeze Bill
          * Cullerton Introduces New Property Tax Freeze Bill (UPDATED)


          * State, Teamsters Reach Tentative Agreement - Workers at IDOT, DHS, IDES, and CMS in Cook County to Vote on New Contract
          * Governor Rauner Extends Tax Filing and Payment Deadlines for Businesses and Individuals Impacted by Recent Tornado - Deadlines Pushed to December 31, 2015
          * Illinois EPA Releases Annual Report on Landfill Capacity
          * IDNR Urges Public to Leave Fireworks Displays to Those Who Are Licensed and Trained - Fireworks Show Sponsors Reminded to Check Credentials of Fireworks Vendors
          * Governor Receives Initial Criminal Justice Commission Report

              * Senator slams for-profit college for 'dece......
              * Durbin pushes for greater access to heroin......

              * Kirk supports Granite City stroke survivor......




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