Auditor general wants financial swaps banned

HARRISBURG, Pa. (AP) — Auditor General Jack Wagner says about a fifth of Pennsylvania’s school districts have recently been involved with financial “swaps,” and he wants the Legislature to ban the practice.
Wagner said Wednesday that, over a recent six-year period, 107 school districts and 86 other local governmental bodies reported that they had entered into swap agreements.
He calls the complex financial deals “toxic products” that should not involve public funds.
His study was prompted by a $12 million loss earlier this year involving a swap by the Bethlehem Area School District.
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