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* From Charlie Wheeler’s latest Illinois Issues column…
After watching Illinois government and politics for more than 40 years, one might reasonably assume that he or she has seen it all.
One — or at least this one — would be wrong. […]
On the other hand, the amazement was understandable to find out that Ty Fahner, president of the Civic Committee of the Commercial Club of Chicago, was claiming that he and his cohorts had been urging Wall Street agencies to downgrade the state’s credit ratings as a way to pressure lawmakers to slash pension benefits for current and retired public employees.
The story was broken in late July by Rich Miller on his capitolfax.com blog site, a must-read for anyone interested in what’s happening in state government and politics. Miller posted an Illinois Channel video of a Union League Club luncheon last March, at which Fahner said he and some of his Civic Committee colleagues contacted the rating agencies, saying, “How in the hell can you guys do this [maintain the state’s existing credit rating]? You are an enabler to let the state continue.”
Miller’s report drew calls for investigation from We Are One Illinois, a labor coalition working to protect public employee pensions but was ignored by virtually all the major media, save Illinois Public Radio.
Two weeks later, Fahner emailed Miller to say that he “misspoke,” and that no one connected with the Civic Committee had contacted the ratings agencies. […]
What morphed the story from simply “amazing” at what the super-rich might do to protect or enhance their fortunes to the higher level of “unbelievable,” though, is the fact that Fahner also is a current partner and former chairman of Mayer Brown, the Chicago law firm that two years ago won a lucrative contract to serve as the state’s bond counsel.
So in essence, a partner of the law firm advising Illinois on its borrowing — for which it’s already been paid more than $1 million in fees and expenses — was simultaneously stabbing the state in the back by trying to crash its credit rating.
Breath-taking perfidy, even for Illinois, but also a good reminder that one should never, ever say, “Now I’ve seen it all!”
Charlie was also on the latest edition of Illinois Public Radio’s “State Week” and chastised reporters for focusing on the “Statehouse doors” controversy and completely ignoring the Fahner story.
posted by Rich Miller
Monday, Sep 16, 13 @ 11:56 am
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This is exactly why “institutional knowledge” is so critical when putting Dopey things into perspective.
Comment by Oswego Willy Monday, Sep 16, 13 @ 11:59 am
So that does it
Draw up the malpractice complaint and send it over to the law firm to see what kind of settlement their insurance company wants to cough up.
Comment by CircularFiringSquad Monday, Sep 16, 13 @ 12:11 pm
As a former student of Charlie’s i can say that no one gets to the bones of it better. He knows where to really look when the shiney objects come out.
Comment by Spliff Monday, Sep 16, 13 @ 12:24 pm
It’s been mind=boggling how most of the media has ignored the story. It’s a heckuva story.
Even more incredible is that not a single lawmaker, that I’m aware of, has taken a whack at Ty.
If nothing else, you have to think Mayer Brown’s name is mud in a lot of high-flying circles.
There are plenty of law firms in the world. After this, why would you shell out big bucks to them?
Comment by wordslinger Monday, Sep 16, 13 @ 12:28 pm
The doors story is easy to understand and sell papers on. Pensions and bonds and bond ratings…oh my gosh, I’m bored just writing this sentence.
Comment by Just Me Monday, Sep 16, 13 @ 12:34 pm
Just Me, there have been plenty of stories on pensions and bond ratings. Why this particular angle has largely been ignored is curious, to say the least.
Comment by wordslinger Monday, Sep 16, 13 @ 12:42 pm
Just Me @ 12:34:
“So in essence, a partner of the law firm advising Illinois on its borrowing — for which it’s already been paid more than $1 million in fees and expenses — was simultaneously stabbing the state in the back by trying to crash its credit rating.”
There, now. That wasn’t so difficult, was it?
Comment by Northsider Monday, Sep 16, 13 @ 12:46 pm
>>Fahner emailed Miller to say that he “misspoke,”
Comment by Grandson of Man Monday, Sep 16, 13 @ 12:52 pm
Maybe the newspaper/news media conglomerate owners have a vested interest in NOT making this story more visible. It would make a lot of Commercial Club members and their organizations look pretty bad.
Comment by Anonymous Monday, Sep 16, 13 @ 12:56 pm
Sorry that my last post didn’t take all the way. In the email Rich shared with readers, Fahner said he’s glad Rich is finally paying attention to the pension problem. Capitol Fax was mentioned in a subsequent pension editorial, in which Rich was said to watch the pension issue “like a hawk,” or something like that. I hope the dig on Fahner was intentional.
I find it hard to believe that Fahner didn’t know Capitol Fax, the major Illinois politics news source, didn’t do pension stories. But then again, maybe it’s true. That’s a job for the IPI, Civic Committee and Chicago Tribune editorial board.
If Fahner knew Capitol Fax covers pensions, then why should anyone believe him when he says he misspoke?
Comment by Grandson of Man Monday, Sep 16, 13 @ 12:59 pm
I notice that almost all of reporters who have ignored this story — despite it being part of their beat — frequently have time to tweet out little tidbits. Would love to see them answer these questions in 140 characters: why have you ignored the Ty Fahner bond rating story? Pressure from the corporate bosses…particularly for the Sun-Times and Trib reporters, whose editors and publishers are on the Civic Committee?
Comment by Wilson Monday, Sep 16, 13 @ 1:04 pm
Following up, isn’t this ripe for an AG investigation or at the very least a review of Fahner’s conduct by the Illinois Atty Registration
Discipline Commission?
Comment by Wilson Monday, Sep 16, 13 @ 1:07 pm
–I find it hard to believe that Fahner didn’t know Capitol Fax, the major Illinois politics news source, didn’t do pension stories.–
Fahner’s whole “misspoke” email to Rich was incredibly arrogant and insulting.
Why anyone would trot that guy out as a frontman for anything is beyond me.
Comment by wordslinger Monday, Sep 16, 13 @ 1:09 pm
During his tenure at the S-T, no one understood state finance better than Charles N. Wheeler III. It’s nice to know he still gets it. Glad someone besides Rich Miller gets it.
Comment by Wallinger Dickus Monday, Sep 16, 13 @ 1:20 pm
This is only a small part of the story. And the story also goes in other directions. There was a very interesting set of reports where the Wall Street firms flogging new issue munis were arranging/hosting private meetings between local and state government officials and selected potential buyers of munis.
These were no-public meetings with only selected, invited parties. Wonder if any State officials went to any of these ‘events’?
Cuts both ways. Noticed that the media kind of buried the story right away.
Comment by Judgment Day (Road Trip) Monday, Sep 16, 13 @ 1:51 pm
One group has not missed this story and that is the GA. Their reputation is tanked and will be a long time before what they say is taken with the same trust as it was previous to this revelation.
Comment by Obama's Puppy Monday, Sep 16, 13 @ 1:53 pm
–One group has not missed this story and that is the GA.–
Has anyone from the GA said a word about it?
They’re falling all over each other condemning “doors” long after the fact. Apparently, none of them noticed all that work going on under the Dome.
Comment by wordslinger Monday, Sep 16, 13 @ 2:44 pm
There is surprise that Fahner would bad mouth Illlinois to bond rating agencies???? I think Fahner and his friends very likely were trying to set up their pals in the bond industry to make more money because of higher rates. That’s the conspiracy that should be investigated.
Comment by observing Monday, Sep 16, 13 @ 2:55 pm
Apparently the tactic of ignoring the story to make it go away is working. Only 17 (now 18) comments. Lots more in the days following when Rich first recounted how a commenter here drew his attention to Mr. Fahner’s misspeaking.
Comment by Anonymous Monday, Sep 16, 13 @ 2:56 pm
==They’re falling all over each other condemning “doors” long after the fact. Apparently, none of them noticed all that work going on under the Dome. ==
They are apparently also appalled that money they voted on in the budget for the Capitol renovation is being spent. Who approved this? Um, you guys did. Doh!
Comment by Demoralized Monday, Sep 16, 13 @ 3:01 pm
Seems to me that both political parties and most of the media are in bed with the Civic Committee. And any follow-up could pull down the covers and leave things exposed that they would rather stay covered.
Comment by SIUPROF Monday, Sep 16, 13 @ 3:05 pm
With all due respect to the sainted Charlie, Dems have been running the state into the ground for a decade. They control all levers of power. Illinois is the Detroit of state governments. But Ty Fahner is the problem!
Comment by crypto Monday, Sep 16, 13 @ 3:35 pm
#yawn
There is nothing new or any new piece of news in Wheeler’s article. It is just a review of what we already know written weeks after the fact.
The media, in general, cover “scandals” that are actual scandals (i.e., Metra, Blago, Operation Silver Shovel, etc.).
This is not a “scandal”. This is an individual exercising their right to express an unpopular or even despicable viewpoint in both private and public.
This is also, perhaps plausibly, an individual who got caught trying to impress his friends in comments before club members.
Sorry to see this one didn’t live up to the hopes and expectations of Wheeler.
Meanwhile, it seems likely Fahner has “learned his lesson” after all this. No need for additional public shaming or piling on by Wheeler so long after the fact.
Comment by Formerly Known As... Monday, Sep 16, 13 @ 4:19 pm
FKA - you know nothing I see. You’re going to dismiss the #1 respected political reporter in the state backhanded like that?
I see all the Daley ites trying to get back into state govt haven’t learned a thing.
Does the fact that Mayer Brown, a firm with umpteen years associated with the Daleys have anything to do with your point??
Comment by low level Monday, Sep 16, 13 @ 5:29 pm
@low level - You clearly haven’t been paying one iota of attention to my posts over the years.
The notion of somehow being a “Daleyite” is beyond laughable. In your terms, “you know nothing I see”.
The random, wildly inaccurate nature of your comments also indicate that you, however, may well be a Quinn-ite not looking to get back in government but currently serving in it.
I wish you and your team good luck in the upcoming elections.
Comment by Formerly Known As... Monday, Sep 16, 13 @ 6:26 pm
- Wilson - Monday, Sep 16, 13 @ 1:04 pm:
Dont blame the reporters. They are as amazed at Tyners antics as anyone. It is the owners of the media conglomerates that run virtually every newspaper in the state that canned the story. Ty is one of their own.
Comment by cod Monday, Sep 16, 13 @ 7:57 pm
FKA, you do realize Illinois Issues only comes out once a month.
Comment by Michelle Flaherty Monday, Sep 16, 13 @ 9:52 pm
cod,
You capsulized it perfectly
Comment by Federalist Monday, Sep 16, 13 @ 10:35 pm