Wednesday, July 09, 2008
Chicago Sun-Times
by MARK J. KONKOL

Morgan Stanley, the New York financial giant that employs one of Mayor Daley's nephews, has been picked to help the Cook County Board borrow $150 million to get by until the county's 1 percent sales-tax increase starts flowing into the treasury.

It's the first deal between the county and Morgan Stanley since the company hired William Daley Jr. -- a nephew of the mayor and Cook County Commissioner John Daley -- to help win business.

Over the last year, William Daley Jr. has met with County Board President Todd Stroger and his top two assistants -- his chief financial officer, Donna Dunning, and former chief of staff Lance Tyson.

"Yes, he made stops to see me,'' Dunning said of Bill Daley Jr. "But he is not working in a senior position. He accompanied William Mack, who is the senior manager for Morgan Stanley. He was there in a junior position.''

Mack was a longtime aide to imprisoned former Gov. George Ryan. Five years ago, Mack, granted immunity from prosecution, testified about directing other state employees to shred documents that Ryan and his campaign manager Scott Fawell feared could be seized by federal agents. Mack's testimony helped send Fawell to prison.

Stroger's administration hired Morgan Stanley and another financial house, Merrill Lynch, as senior managers for the borrowing, which is being done through the issuance of tax-anticipation bonds. Ramirez & Co. and Grigsby and Associates are the co-managers. The companies will collect fees for issuing the bonds, but those fees have yet to be determined.

"We picked the most-qualified team,'' Dunning said.

The county expected the bonds to be sold Tuesday and to be repaid next year.