Tennessee Comptroller Justin Wilson and his policies to tighten regulations governing municipal debt have been highlighted today by Stateline. The story explains how Wilson beefed up state oversight after learning that the annual interest payments on a bond in Lewisburg had quadrupled to $1 million.
From the Stateline report:
Wilson cracked down on high-risk interest rate swaps, a form of financial instrument known on Wall Street as a derivative. Then, in an effort that concluded last month, he developed a model debt management policy for local governments.
Wilson tells Stateline he isn’t trying to ban riskier investment tools such as swaps, but that he wants to make sure officials and taxpayers understand the potential risks, avoid potential conflicts of interest, and keep the process transparent.
For more with Wilson, check out this Q/A with TNReport from earlier in the month, including comments from Wilson on hiring former House Republican Caucus Leader Jason Mumpower, criticism of his office’s audits, and transparency in economic development deals.