Philly School District Mulling Over Lawsuit Against Wall Street Banks

The Philadelphia School District may soon file a lawsuit against a host of Wall Street Banks for their ongoing budget crisis, claiming that several of the banks’ Libor rate rigging resulting in losses for the district. The district took out swaps with Merrill Lynch, Goldman Sachs, Morgan Stanley and Wachovia (now Wells Fargo), resulting in a loss of $161 million thanks to alleged bankster fraud. The lawsuit, however, could also include other accused banks like Citi, Bank of America, JPMorgan, and Barclays, among others. Should the suit be successful, it could afford the school district tens of millions of dollars in much-needed funding. A date to file the lawsuit has not yet been set. [City Paper]