FM: This isn't answering your point but you brought up a lot of other questions. If investor revenue streams for municipal bonds that funded utilities came from city and state taxes then what happens when the bank owns the utilities directly? Does the revenue stream continue to come from taxes or does the bank pay them? Also, does the municipal government now release its control over who it chooses to award contracts to run its former public utilities and does the bank now go into the business of contracting and managing former city and state utilities?
^^^^^ CB: I'm trying to think what "privatized" means here. Municipal and state bonds have always been with Wall Street, I thought. Normally, there isn't much risk of default because the revenue streams are taxes. I don't know if the big deficits of big states like California and Illinois might increase that risk. Anyway, even if they were bundled, etc. would there be much risk that they would go bad like the predatory mortgages ?