It is no secret that the credit & financial markets are suffering as part of a global financial crisis. Companies of all types are struggling to keep afloat during these tough times. The MTA is no different as it tries to raise some money through the sale of tax-exempt bonds. While the attempt to sell these is not shocking, the way they decided to pitch them is. William Neuman of the New York Times has more in this report:
With the credit markets suffering as a result of the global financial crisis, the Metropolitan Transportation Authority has taken the unusual step of appealing directly to its riders for help in raising cash — but not, in this case, with a fare increase. The authority began running radio ads over the weekend, with former Mayor Edward I. Koch promoting the sale of tax-exempt bonds that it uses to finance its large-scale projects.
The authority typically sells its bonds to large institutional investors; the appeal to the general public is unusual and intended to generate greater demand for its bonds at a time when the credit markets have been badly shaken. The ads tell interested buyers to contact their broker or financial adviser or to go to the authority’s Web site, www.mta.nyc.ny.us, where a prominent link will take them to the bond sale prospectus.
Click here to read the complete article & to be able to listen to the ad featuring Ed Koch.
I wonder if the pitch to a different type of purchaser will work for the agency. At a time where every dollar earned can help, it doesn’t hurt to try.
xoxo Transit Blogger