But the dumbest thing I think I've seen is for a transit agency to do a leaseback deal when many of them have almost lost thier shirts recently because of the AIG collapse. Really guys?
The transit agency also will rely on $150 million in lease-back agreements to help get the first phase of the project under way. The lease agreements allow agencies like Metro to sell railcars, buses and other assets to banks and lease them back at a lower cost. The banks then can claim depreciation of the assets in tax deductions.This seems like a whole lot of bad decision making rolled up into this project. More expensive LRVs and possibly bad bank deals during a time when banking isn't exactly healthy.