Wednesday, May 13, 2009

Sterne Agee V.P. Is Son of Melton's Physician and Nephew of Hinds County Supervisor

The details on the interest rate swap used to refinance Jackson's 2002 and 2004 bonds continue to bubble up to the surface of the swamp that is Jackson's political scene. While Jackson travels down the path to disaster, Jefferson County,AL, Houston, and other cities found out the hard way what happened when they went down the same path after listening to some smooth-talking shysters from Wall Street.

Sterne Agee is the "bond advisor" for Jackson on this particular deal. When the deal closes, Sterne Agee will reap $476,000 for its "advice." In addition to this fee, Sterne Agee will also receive at least $50,000 per year for four years to "monitor" the swaps. Nice grub if you can get it. Earlier post on Sterne Agee contract, includes copy of contract

One might be tempted to ask how Sterne Agee wound up with such a nice deal. It turns out there is a Mississippi Connection at Sterne Agee and it's not their local office. Robert A. Smith, Jr. is a Vice President in the Public Finance Group in the New York City office of Sterne Agee. His biography on the company website states: "He has over 13 years of experience in trading, sales, and deal structuring. Prior to joining Sterne Agee, Mr. Smith was employed at JPMorgan Securities, Inc. He earned a B.S. from The Wharton School of the University of Pennsylvania, and holds professional license (Series 7 & 63)."

Sterling credentials. However, the 37 year-old Smith is also the son of Dr. Robert A. Smith, Sr. of Jackson, Ms and graduated from St. Joseph's High School in Jackson. Dr. Smith (read his life story some time, it's very impressive) was Frank Melton's personal physician. WAPT reported:
"During a hearing on Monday, Jordan heard from Melton's physicians, Dr. Myrna Alexander and Dr. Robert Smith, about the mayor's health." WAPT story There are numerous media stories citing Dr. Smith as Melton's doctor. Dr. Smith also happens to be the brother of Hinds County Supervisor George Smith.

Unfortunately, this is more proof this deal is a bad one for Jackson, as it's clear the local political bosses are only interested in looting Jackson as they bankrupt the city. Jim Evans' wife gets $60,000. Baker Donelson gets $120,000. Local attorney Anthony Simon gets $60,000. The firm that employs the son of Melton's physician gets $476,000 up front and at least another $200,000 in future years. All for refinancing bonds that when first issued, cost $2.5 million less in fees then they will now. Let the party begin.

Earlier posts:
Will Jackson become the next Jefferson County?
Jackson paying $4 million in fees
Municipal Carnage caused by Wall Street

20 comments:

trey said...

This deal really smells. Fish - have you sent to Rick Hill asking for why it approved with flying colors?

Kingfish said...

called a few times. No one even answered.

Anonymous said...

He's only had his Series 7 since 2000 - about 9 years. Check the FINRA website.

Kingfish said...

Didn't say he didn't. I only wrote he held them.

Anonymous said...

Was talking about the "13 years" propaganda.

Kingfish said...

FINRA profile

Anonymous said...

Nothing there.

Kingfish said...

have to enter his name then. Robert A Smith Jr. its like page 5 or so of the results.

Anonymous said...

Wonder why the so called mainstream media hasnt tackled this?

Anonymous said...

Whoa! Doesn't the city realize what a MESS they are in with this? Geesh. Very little downside and who knows how much upside in interest rates?

Anonymous said...

Check your facts. George Smith is Dr. Smith's brother, but I think it is Dr. George Smith, also a doctor, not a supervisor.

Kingfish said...

They either don't understand it or don't care or are making someting on it outside of Simon and Weill.

Anonymous said...

My prediction is that this deal will not go through. Both Baker Donelson and Simon are advising the City not to proceed as structured. Evans is a dead duck with McLemore in charge.

Kingfish said...

How so?

council approved it. Melton signed K with Sterne. All Mac has to do is sign it and he seconded the motion to adopt the resolution.

Anonymous said...

Stopping these transactions is very important. Immediately afterwards with the new incoming administration has to come the policy discussion which, in my mind, is the bigger issue and the reason for the current pursuit of these esoteric debt instruments. Jackson can't keep refinancing bond debt indefinitely as a matter of policy. Perpetual delay and deferment of debt repayment while our decline in population and businesses accelerates is a sure-fire guarantee of future bankruptcy.

Kingfish said...

two things need to happen:

1. Adopt a rule opening these up for bids

2. establish a board like the zoning board. Allow each councilman to appoint two experts and specify what their qualifications have to be and also allow them to appoint from outside their district, you want expertise, not homers. Pay them if need be. Paying 50K a year to 7 guys or so is cheaper than a really bad bond deal that cost millions.

Anonymous said...

Good stuff here. One thing people may not know is that H Johnson was set to do a bond swap if reelected in '05. Of course, had he been able to do so, we really would be in a mess because of the market downturn that decimated other cities who did the same. There used to be a report online that spelled out how the Johnson administration planned to make up for a shortfall through increased fees (which Melton eventually did) and a bond swap.

Kingfish said...

Wish I could read it.

stilettoGOP said...

I'd actually like to go to the debate. Not that I expect anything but softballs, but, there's certainly a lot going on lately that COULD be done with the questions tonight.

Anonymous said...

Crisler needs to get a clue. When you vote to approve long term debt you are voting for future tax increases.



Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.