Anyone who has ever dealt with in the muni-bond market (and who has even half a brain) knows the market was all about collusion. So this comes as no surprise:

Three federal agencies and a loose consortium of state attorneys general have for several years been gathering evidence of what appears to be collusion among the banks and other companies that have helped state and local governments take approximately $400 billion worth of municipal notes and bonds to market each year.

E-mail messages, taped phone conversations and other court documents suggest that companies did not engage in open competition for this lucrative business, but secretly divided it among themselves, imposing layers of excess cost on local governments, violating the federal rules for tax-exempt bonds and making questionable payments and campaign contributions to local officials who could steer them business. In some cases, they created exotic financial structures that blew up.

Now that every dubious practice is being exposed we'll be seeing lots and lots more of this. I'm reminded of one bond issue done in the San Antonio area, well, better not say anything more. I doubt any of the officeholder for that special revenue district are even around any longer anyway.