The Loop Capital Connection

LoopCapitalLogoToday’s National Day of Action in both Chicago and Philadelphia will target Loop Capital and head honcho JIm Reynolds.  PCAPS will rally at their local HQ at 2 Penn Center.

Jim Reynolds was the central representative from the African American business community publicly aligned with Rahm Emanuel in support of his closing of the record number of schools in American history in Chicago this past May. He is also one of the primary contractors in cities across the country in providing bonds, toxic interest rate swaps and financing for privatization deals through his company, Loop Capital. Loop Capital has provided municipal financing of bonds in 49 states, partnering with other banks on $818 billion worth of deals since their inception. In addition, Reynolds has supported Mayor Rahm Emanuel’s anti-violence initiatives even as the Mayor locks up record numbers of Black and Latino youth, initiates stop and frisk in Chicago and pushes for mandatory minimums for gun offenders in the state legislature, which by most accounts will lead to the incarceration of 4000 additional people and cost the state an additional $965 million over the next 10 years.

In Philadelphia, besides the involvement with toxic interest swap deals, Loop Capital in partnership with J.P. Morgan , is financing the sale of the PGW, a deal that will net them upwards of twelve million dollars while privatizing another public service.

According to philly.com Loop Capital was also “implicated in the pay-for-play scandal during the administration of Mayor John F. Street involving the late lawyer Ronald A. White. City officials said that did not disqualify them from the PGW deal.”

“Loop got extensive Philadelphia pension-fund and city business after it hired White as a $5,000-a-month consultant. Loop was not charged in the 2004 federal indictment against White and former city Treasurer Corey Kemp, who was convicted in the corruption scandal.”

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