SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
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        

  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:


  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
* *** UPDATED x2 *** Duckworth doesn't play in Peoria
* *** UPDATED x1 *** Let's be careful out there
* Question of the day
* SUBSCRIBERS ONLY - Political events calendar
* *** UPDATED x1 *** What today's cyber attack could mean for election day
* Rewriting history
* Army Corps of Engineers taking back state park
* Fire everything!!!
* More horrible pension news
* More flowery Madigan praise from Bradley
* Because... Madigan!
* Looking on the dark side
* Lawyers: Mayor Emanuel is "not a policymaker for the city"
* Duckworth has huge cash advantage
* SUBSCRIBERS ONLY - Supplement to today’s edition and a campaign roundup
* Good morning!
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Visit our advertisers...






Search This Blog...

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

Search the 98th General Assembly By Keyword

* Time Warner targeted for AT&T takeover
* Sony XPERIA XZ First Impressions: The Real Sony Flagship?
* Ouch – Samsung roasted by President Obama
* MacRumors Giveaway: Win a Customizable iPhone 7 or 7 Plus Case From Casetify
* Pixel SIM tray has Google’s address imprinted on it
* Sprint, US Cellular start LG V20 pre-orders
* uBreakiFix partners with Google for same-day Pixel screen repairs

* Getz to oversee White Sox Minor Leagues
* International draft stands to benefit White Sox
* Davidson reflects on 'whirlwind' 2016 season
* Starting pitcher rankings: White Sox have four of them
* Podcast: 2016 Chicago White Sox Infield Review
* White Sox Rumors: Sox hire Chris Getz as new Director Of Player Dev...
* Source: Getz to oversee Sox player development


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
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


RSS Feed 2.0
Comments RSS 2.0


* Drunken driving education program reinstated in.....
* Reeder: Movie on Madigan worth watching - Chica.....
* Drunken driving education program reinstated in.....
* Drunken driving education program reinstated in.....
* Drunken driving education program reinstated in.....

* Retired detective turns in nephew for downtown bank robbery
* Cook County, Illinois, lawyer who posed as judge charged
* Attack in Afghanistan killed Illinois soldier, Oklahoma man
* Attack in Afghanistan killed Illinois soldier, Oklahoma man
* Retiring Wrigley Field scoreboard operator has seen it all
* Drunken driving education program reinstated in Springfield
* Arson suspected in fire at Illinois home where bodies found
* Paralympic medalist will be UI homecoming parade marshal
* Illinois man accused of threatening fire in GOP office
* Men caught with 128 pounds of pot convicted in Nebraska

* SIU injury-prevention program reinstated through stopgap budget
* Survey: 386 state jobs could relocate to Springfield
* SIU injury-prevention program reinstated through state's stopgap spending plan
* Illinois unemployment rate holds at 5.5 percent
* Loose ceiling beam in Coliseum led to closure
* Proposal would ban agency directors from campaign ads
* Illinois State Fair Coliseum closed due to structural deficiencies
* State fairgrounds Coliseum temporarily closed due to structural deficiencies
* Illinois agency: YouTube glitch behind training video porn
* Corrections officers call for increased safety at Logan County prison

* The possible vendetta behind today's web attacks
* Cyber attacks take down multiple major websites
* Cyber attacks take down major websites
* OCC expands, plans to move Chicago HQ
* Paid sick leave law pays off for political backers

* ‘Hamilton’s America’ a must for stage musical’s fans (and more)
* Sheriff’s office seeks information about Homer Glen homicide
* Two chances at Wrigley Field — and two shots at history
* Flagship edition
* Chris Getz named White Sox director of player development
* Editorial: Don’t let Congress block historic climate change deal
* Bill Murray crashes White House press room to talk Cubs
* Ethics board puts aldermen in squeeze play on Cubs tickets
* Second man convicted of felony charges in ‘squatter scheme’
* A little bit of fun

* Scottie Pippen files for divorce from Larsa, his wife of 19 years
* NFL puts kicker Josh Brown on 'exempt' list; Giants sign Robbie Gould
* Judge halves $2M bond for EMT with felony past
* Time to rethink neighborhood permit parking zones, city clerk says
* Hacking vendetta seen in attack on East Coast web host
* EU leaders spar over Russia sanctions
* Duterte's flip-flop into bed with China is a disaster for the United States
* Jets, yachts, vacation homes all factors in cancer center founder divorce
* Cubs fan wins big lottery prize while watching game
* Retired detective uncle turns in man for Aon Building bank robbery

The widget AQL4JYGHIY powered by Feed Informer does not exist.

* SIU injury-prevention program reinstated through stopgap budget
* Survey: 386 state jobs could relocate to Springfield
* Our View: For circuit judge, Cadagin, Troemper are endorsed
* SIU injury-prevention program reinstated through state's stopgap spending plan
* Illinois unemployment rate holds at 5.5 percent
* Loose ceiling beam in Coliseum led to closure
* Proposal would ban agency directors from campaign ads
* Bernard Schoenburg: Judge candidates investing in their own campaigns
* Eugene Robinson: Can we please just fast-forward to Election Day?
* Ray LaHood and Ed Rendell: Vote 'yes' on roads amendment

* Haunted trail...
* UPDATE: Police ID shooting suspect
* 'Shop local': it's not just for holidays anymore
* Do you have a will, or a power of attorney?
* Deloufleur expands to new building in Crainville
* Attack in Afghanistan killed Illinois soldier, Oklahoma man
* Tom's #Mailbag, Oct. 21 2016
* Tom's #Mailbag, Oct. 21, 2016
* Friends, family remember Fairview soldier killed in Afghanistan
* U.S. internet disrupted by cyberattacks on key firm

* Lake County groups grateful for church's financial assistance
* Former Mundelein church donating $700,000 to charities
* The beneficiaries
* Chicago Bulls counting on Wade to rub off on teammates
* Two charged in Glendale Heights armed robbery

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* US Sen. Dick Durbin urges big pharma actio......
* The Daily Northwestern : U.S. Sen. Dick Du......

* Endorsement: US Senate, Mark Kirk - Peoria......
* Kirk far behind Duckworth in fundraising f......

* Cartoon of the Day 10/19/16 Trump locker room talk
* Illinois Spending On K-12 Education Higher Than Pre-Recession Levels, Report Finds
* Chicagoans Commemorate 2nd Anniversary Of Laquan McDonald's Death
* Illinois' U.S. Senate, 13th Congressional District Candidates To Debate Next Week
* Cubs Post-Season At Wrigley This Weekend, Usual Parking Restrictions Apply
* Anonymous group reveals why they're opposed to Illinois Policy Institute
* Schakowsky's check-kiting husband behind Trump rally violence, undercover video reveals
* Kal'ish Vegan Is Hiring
* You're Invited To The Grand Re-Opening Party For Buena Park Circle This Sunday

* Illinois EPA Sponsors Interactive Environmental Education Event with Riverton Elementary School - Riverton Third and Fourth Graders “Dive In!” to Celebrate the Environment
* Illinois Partners with State of Telangana, India to Strengthen Smart State Initiatives - State to state agreement to accelerate opportunities and service to citizens
* Illinois EPA Announces Vehicle Emissions Testing Network Updates - New Contract to Offer More Efficient, Less Expensive Tests
* Annual Training Underway For Gas Station Owners, Service Technicans
* Governor Rauner Announces Recommendations from Health Care Fraud Elimination Task Force Report

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