Irish bank declares Wis. school trusts in default - WKOW 27: Madison, WI Breaking News, Weather and Sports

Irish bank declares Wis. school trusts in default

MADISON (WKOW) -- An Irish bank is taking back millions of dollars it loaned to five Wisconsin school districts.

The Kenosha, Kimberly, Waukesha, West Allis-West Milwaukee and Whitefish Bay school districts took out $165 million in loans with Dublin-based DEPFA Bank to help pay for retired staff members' benefits.

The bank says it has seized most of the trusts' remaining value and declared them in default Wednesday, after it was clear the investments made went bust, said Bill Broydrick, a lobbyist for the bank.

According to Broydrick, the bank took action "after it became clear that they were unwilling to meet their obligations."

The districts are suing the banks that sold them the investments, claiming they were misled into believing they were safe.

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