Lewisburg, Tenn., found interest payments had quadrupled.

08bond_600Five years ago, this small factory town was struggling to pay the interest on a bond for new sewers. Bob Phillips, Lewisburg’s part-time mayor and full-time pharmacist, was urged by the town’s financial adviser, an investment bank named Morgan Keegan & Company, to engage in a complex financial transaction to lower interest rates.

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From the New York Times, “Firm Acted as Tutor as It Sold Risky Deals to Towns

Published: April 7, 2009

Photo: Josh Anderson for The New York Times

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