MONTGOMERY, AL (WSFA) - At the heart of Birmingham Mayor Larry Langford's conviction is the $7 million bond issue. Bonds are common for cities and other government bodies to issue.
Montgomery investment banker Bob Young has more than 37 years in the bond business. He says, simply put, a bond is a loan. Loans municipalities and other government bodies take out when they don't have enough cash to fund a project. He says, "Typically municipalities don't have the cash on hand to build large projects."
Projects like new schools and the new jail in Montgomery County were all funded through bonds. Investment bankers like Young play an important role in the process. Young tells us it's rare for an investment banker to be asked for a bribe.