A California community-college district is suing JPMorgan Securities to block the bank’s effort to compel the college to issue bonds that could contribute as much as $4-million to the bank’s profits, according to Bloomberg Businessweek. The Peralta Community College district, in Oakland, filed the suit on Monday in a California court. The college asked the court to void a 2006 refinancing contract, asserting that the deal was unconstitutional under a 2009 opinion by the state’s attorney general. The college said that the deal would shift savings from interest-rate declines away from taxpayers at a time when the state’s colleges are dealing with significant budget pressures. A spokeswoman for JPMorgan declined to comment on the lawsuit.
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