Economics
States, Cities Shun Finance Competition, Victimizing Taxpayers
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Since 1999, Lee's Summit School District near Kansas City, Missouri, has used competitive bidding to get the best price on at least $20 million of equipment and services, from school desks to brooms. When it comes to selling municipal bonds, the district doesn't shop for the best deals.
That work goes exclusively to Minneapolis-based Piper Jaffray Cos., which has collected almost $1 million in fees for bond sales totaling $127 million since 1999.