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.


* AFSCME rolls out new video comparing Bruce Rauner to Scott Walker
* 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

          
        * Copper Sony Xperia Z3, SmartBand Talk leaked in press images
        * Sony Xperia Z3 in Copper, E-Ink SmartBand shown off
        * Lenovo steps up its game with new Intel-powered Tab S8
        * Sony at IFA 2014: rumor roundup
        * Leaked pictures of Sony’s ILCE-QX1 to support E-mount lenses
        * China Mobile Begins Accepting Preorders for Unreleased iPhone 6
        * Lumia 830 leaks trump previous rumors, only 10 megapixel camera?

        * 64GB Nexus 5 Could Be A Possibility
        * Samsung SM-G5309W Spotted
        * PewDiePie Shuts Down YouTube Comments On His Channel
        * China Mobile Accepts iPhone 6 Preorders
        * Japanese Bipedal Robot Hits 2.6mph Speed
        * Plantronics BackBeat Pro Bluetooth Headphones Review
        * L.A. Dunkin' Donuts Fans Show Off Long Line, Coffee Hauls on Social Media

        * Viciedo, Flowers power White Sox to extra-inning win
        * White Sox 6, Twins 3 (10 innings): Dayan Viciedo's homer breaks sta...
        * Viciedo, Flowers power White Sox to extra-inning win
        * White Sox deliberate, but Rodon not called up
        * Mitchell not called up, but still in team's plans
        * Taylor eager to make most of September promotion
        * Abreu takes break from lineup in cautious move


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

        Archives
        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


        * Editorial: Government consolidation can save Il.....
        * Salaita firing shows where Zionism meets neolib.....
        * Bruce Rauner seems to think Illinois voters are.....
        * Oberweis seeks veto override for speed-limit bill..
        * Quinn Living on Minimum Wage..
        * Rauner Attacks Quinn's Veterans Policies..


        * Study: Playing music helps sharpen kids' brains
        * EPA OKs FutureGen plan for CO2 storage
        * Kirk: US must take hard line against Islamic State
        * Gubernatorial candidates discuss jobs, veterans
        * Suburban Chicago man sentenced for killing infant
        * Rauner criticizes Quinn on veterans
        * Illinois woman rescued after day stuck in mud
        * First medical marijuana tally expected next week
        * School starts in Chicago with more safety guards
        * Climatologist says August warmed up in Illinois

        * Rauner criticizes Quinn on veterans
        * Gubernatorial candidates discuss jobs, veterans
        * Quinn: Eating crackers on minimum wage challenge
        * Illinois prisons struggle with backup power issues
        * State starts accepting medical marijuana requests
        * Audit finds state lax in reviewing eligibility for children’s health insurance program
        * Does the governor need to live in the Executive Mansion?
        * Statehouse Insider: Hands off investments
        * State of unions: AFSCME wins some, loses some on outsourcing
        * State of unions: Domination of Illinois' workforce becomes campaign issue

        * Fashion's latest powerhouse has Chicago roots
        * Jeb Bush to campaign here for Rauner
        * Anne Dias Griffin claims 'coercion' when signing prenup
        * Rauner's $100,000 question
        * Amtrak renews complaint against freight line over Chicago-Carbondale delays


        * Durbin’s race against Oberweis no runaway
        * Bishop Larry Trotter backs Jim Oberweis for U.S. Senate
        * More rain, storms possible for rest of Labor Day
        * CTA offering free rides for students on first day of school
        * Elmhurst couple in murder-suicide were doting parents: neighbors
        * Man charged in forest preserve shooting
        * Police: Murders down 7.5% through August 2014
        * ‘Long way to go’ but Roseland Hospital shows signs of stability
        * Man charged with battery; police say he threw baby from vehicle, beat girlfriend and boy
        * Four dead, 36 hurt in Labor Day weekend shootings


        * Police: Missing man last seen in Bronzeville neighborhood
        * Spokesman: Chicago police considering body cameras
        * Cops did not find suicide note of man who killed wife, disabled children
        * Surf park proposed for Montrose Beach
        * Woman sues company, driver in Friday's shuttle bus crash at O'Hare
        * Lawyer: Federal agents investigating shootings by Chicago cops
        * Woman in her 80s says in lawsuit she was trampled by runners at Little Italy festival
        * Family files suit blaming Port Barrington bar for fatal crash
        * Rauner declines to say how personal relationship with Emanuel will affect political one
        * Not guilty pleas in red light camera bribery scheme


        * Pregnant Workers To Be Protected Under New Law
        * Libertarian Party Files Criminal Complaints Against GOP, Rauner Campaign
        * Dana Thomas House Drying Out, But More Water Works Needed
        * FutureGen Takes Another Step Forward
        * Decatur's Kirkland - From Beethoven To The Beatles
        * Big Predators In Illinois Inspire New Law
        * WUIS/SJ-R Business Report: Casey's Expansion; Parsons In Court; Farmland Prices Fall
        * Opposition Research Key Part Of Political Dark Arts
        * Digging up political dirt? That's their job
        * State Starts Accepting Medical Marijuana Requests


        * Rauner criticizes Quinn on veterans
        * Quinn: Eating crackers on minimum wage challenge
        * Illinois prisons struggle with backup power issues
        * State starts accepting medical marijuana requests
        * Couple’s wedding gifts help the community
        * Angela Bertoni: How to raise awareness of domestic violence in October
        * Catherine Rampell: Tech firms’ poor record of diversity
        * Audit finds state lax in reviewing eligibility for children’s health insurance program
        * Does the governor need to live in the Executive Mansion?
        * Our Opinion: Driving into floodwater a deadly practice


        * Resignation over disagreement, letter confirms
        * State rep hosting town hall meetings
        * Morgan County property transfers
        * Chautauqua celebration coming to Murphysboro
        * Carol Johnson
        * Gary Owens
        * Mary Benton
        * Faye Willmore
        * Flo Cook
        * Janet Engel


        * Girls tennis: Tuesday's results
        * Girls volleyball: Tuesday's results
        * Girls golf: Tuesday's results
        * Girls cross country: Tuesday's results
        * Boys soccer: Tuesday's results

        * US Rep. Lipinski accepting service academy...
        * Rep. Lipinski Accepting Service Academy Ap...
        * Dem Explains Why He Voted 'Present' on DAC...
        * Immigration dominates Lipinski's town hall...
        * US Rep. Lipinski accepting service academy...
        * Rep. Lipinski Accepting Service Academy Ap...
        * Dem Explains Why He Voted 'Present' on DAC...
        * Immigration dominates Lipinski's town hall...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * IRS enforcement agent numbers could drop t...

        * Durbin, Bustos Highlight Potential of Digi......
        * Durbin, Bustos Highlight Potential of Digi......
        * President Baker talks manufacturing innova......
        * President Baker talks manufacturing innova......
        * Thomson Prison Staffing Continues With Job......

        * Gubernatorial candidates discuss jobs, vet......
        * Kirk: US must take hard line against Islam......

        * Players In Red Light Camera Bribery Scheme Plead Not Guilty
        * My Fathers Day Present
        * Study: Businesses In Low-Income, Majority Minority Areas Struggle To Access Credit
        * Loan denied stamp
        * Election 2014
        * Guest Post: Harris v. Quinn: Another Nail In The Coffin Or Shot In The Arm For Labor?
        * Women's Rights Advocates, IL Lawmakers Rally For Reproductive Choice
        * Preckwinkle at Reproductive choice event
        * Reproductive choice event 2
        * Reproductive choice event


        * When it comes to jobs and hiring, Pat Quinn is veteran unfriendly
        * Pat Quinn’s Blagojevich-style Hiring Hurts Veterans
        * Rauner Rolls Out Veterans Coalition
        * ICYMI: Capitol Fax: “A Very Good Point”
        * Like All Illinoisans, Veterans Are Hurting Under Pat Quinn




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