Analyst: Bond deals cost county billions

JEFFERSON COUNTY, AL (WBRC) - Jefferson County should be getting more out of JP Morgan Bank, the company involved in deals that left the county in financial ruin with a $3 billion sewer debt, according to a financial analyst.

Tuesday, Calvin Grigsby, a municipal debt expert presented Jefferson County Commissioners with his study of the sewer debt crisis. Grigsby found the JP Morgan and other key figures should be held responsible for the bond deals that ended up costing sewer customers about $550 million.

"The conduct was so brazen and outrageous," Grigsby said. "Maybe there are punitive damages or exemplary damages, as we call it in the legal profession, can be recovered."

He said the county needs to recoup the money before it refinances a new bond deal to pay off the debt. County Commissioner George Bowman hopes to get the county's legal department to consider the findings of Grigsby's report.

Copyright 2011 WBRC. All rights reserved.