Report: Wall Street made more than $110 million on recently purchased CPS bonds, and other Chicago news

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Students enter Edwards Elementary School on the first day of the CPS's 2016-'17 academic year. - ASHLEE REZIN/SUN-TIMES
  • Ashlee Rezin/Sun-Times
  • Students enter Edwards Elementary School on the first day of the CPS's 2016-'17 academic year.

Welcome to the Reader's morning briefing for Monday, October 3, 2016.

  • Weather: The sun returns

It will finally be partly sunny and warmer again Monday, forecasters promise, with a high of 68 and a low of 60 despite gray skies and fog earlier on. [AccuWeather]

  • Report: Nuveen and J.P. Morgan Chase made more than $110 million on Chicago Public School junk bonds 

    The Wall Street Journal reports that J.P. Morgan Chase & Co. and Chicago-based Nuveen Asset Management have made profits exceeding $110 million on purchases of $763 million in Chicago Public Schools bonds, which currently have a below-investment-grade, or junk, credit rating on nearly $7 billion issued. CPS has said it needs the money to replenish its dwindling coffers before the new school year and to build and repair facilities. Jackson Potter, staff coordinator at Chicago Teachers Union, counters that “J.P. Morgan and Nuveen are taking advantage of a distressed school district at the expense of our most vulnerable students." [Wall Street Journal]

  • City asks for proposals to develop the planned Olympic Village in Bronzeville

Seven years after it lost its bid for the 2016 Olympics, the city of Chicago is finally thinking about redeveloping its proposed Olympic Village site, a 49-acre plot former mayor Richard M. Daley purchased in 2008 after the closure of Michael Reese Hospital. Mayor Rahm Emanuel is now accepting proposals for a mixed-use development on the Bronzeville property. [Tribune]

  • DNA testing clears Chicago man serving life sentence for a 1992 murder

Mark Maxson is a free man thanks to recent DNA testing and a reinvestigation by the Cook County state's attorney's office. Maxson, 55, was sentenced to life for the brutal 1992 murder and sexual assault of six-year-old Lindsey Murdock despite the lack of any physical evidence; convicted murderer Osborne Wade, 42, has reportedly confessed and apologized for the crime and was immediately indicted after the decision. Maxson—who was interrogated by Area Two investigators formerly under infamous police commander Jon Burge and who has proclaimed his innocence from the start—is now suing the city for $54 million. "It's not just one man, it's a systemic problem," Elliot Zinger, an attorney for Maxson, told CNN. [CNN] [Sun-Times] [Tribune]

  • The Uber and Lyft effect: Cab rides down by nearly a quarter

Chicagoans took 23 percent fewer cab rides in the first half of 2016 as compared to the same period in 2015. Uber and Lyft didn't provide DNAinfo Chicago with data on rides, but many taxi drivers blame the use of ride-sharing services for the decline. "There is no more cab business anymore," cabdriver Arshad Kanji told the site. "We're finished." [DNAinfo Chicago]


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