Mass. Turnpike Toll Increase to Pay Interest to Banks

They seem to MAKE OUT at EVERY TURN, don't they?

"The agency will be forced to pay Lehman Brothers $37 million as part of a complex financial deal negotiated earlier this decade. Lehman, or whoever assumes the assets of the bankrupt company, can demand the money"
Also see: Transportation Troubles in Taxachusetts

"Rating cut increases chance of toll hikes" by Noah Bierman, Globe Staff | October 3, 2008

Another day brought another piece of dismal financial news for the Massachusetts Turnpike Authority. One of the authority's two rating agencies downgraded its credit rating yesterday, putting its bonds just a notch above junk status and increasing the likelihood that a significant toll increase is coming soon.

The agency will be forced to pay Lehman Brothers $37 million as part of a complex financial deal negotiated earlier this decade. Lehman, or whoever assumes the assets of the bankrupt company, can demand the money if the authority's other rating agency, Fitch's, follows Moody's with its own downgrade - something it has threatened to do.

Turnpike officials said the authority might also need to set aside another $9.5 million from its reserve account as collateral on another investment as a result of the downgrade, though that issue is still being researched. --more--"

Of course, this is all so the Turnpike can make interest payments to banks to the tune of "a staggering $22 billion" for the Big Pit, as we call it around here and paying off banks like UBS, who can "demand repayment of an additional $2 million a month beginning in January" while also receiving a "$179 million payment.

That's what the TOLL INCREASE is FOR, taxpayers!!!!!