Merrill Lynch (NYSE:MER) sold the city of Springfield Mass a financial instrument which lost 90% of its value. According to The Wall Street Journal "Merrill violated state law by not properly informing the city what it was buying."
Christopher Gabrieli, who runs the city’s finances, wants his money back.
Gabrieli and his friends are one in a parade of boobs who appear to have wanted big returns but were not willing to apply proper due diligence to what they were buying. The man may be unhappy, but the result should be that he is pushed out of his job. He says Merrill did not send him details on the investment until it was too late. The real question is why he did not ask for them before he wrote Merrill a check.
Over the next few months, countless municipalities and institutions will complain that firms like Merrril robbed them. In reality, the buyers failed to read the fine print.
Caveat emptor.
Douglas A. McIntyre
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