interest rate swaps

A bipartisan group of state senators is trying to rid Pennsylvania of the use of complex financial agreements known as interest rate swaps.

Interest rate swaps have been maligned in recent years as the unnecessary bringer of woe, as governments saw cash cows turn to dollar drags when they were blindsided by the 2007 credit crisis, and then the recession of 2008. The instruments were illegal for local government entities across the commonwealth until a 2003 law signed by former Democratic Gov. Ed Rendell.