From Governing.com
..........''For example, in a case filed by the SEC, five school districts in Wisconsin participated in a program to create a trust to fund retiree benefits by investing in notes linked to the performance of synthetic collateralized debt obligations (CDOs). In three transactions, the districts put in $37.3 million of their own money and borrowed $162.7 million, for a total investment of $200 million. According to the charges filed against the broker by the SEC, the investments "steadily declined in value in 2007 and 2008 as the CDO portfolios suffered a series of downgrades." By 2010, the second and third investments were a complete loss, and the lender had seized all of the trust's assets. In addition to a complete loss of their investments, the districts suffered credit-rating downgrades, according to the SEC charges.''
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