The investors don't care about the school, they care about the interest payments they will receive. Bonds are often considered lower risk because the income is fixed.
Earning "huge" amounts of interest is exactly what they are doing. They get cash, they put it back in the bank. The lawsuit is about the "huge" interest rate being rigged.
Oh, you ask why they don't do that and never build the project? Because they're paying interest on it in excess of whatever they're earning. The earned interest is only to minimize the cost of sitting on the borrowed money.
Using a broker to decide the winner leaves less paper trail. It'd be weird for three competing banks to have a three way call every time this happened.
Earning "huge" amounts of interest is exactly what they are doing. They get cash, they put it back in the bank. The lawsuit is about the "huge" interest rate being rigged.
Oh, you ask why they don't do that and never build the project? Because they're paying interest on it in excess of whatever they're earning. The earned interest is only to minimize the cost of sitting on the borrowed money.
Using a broker to decide the winner leaves less paper trail. It'd be weird for three competing banks to have a three way call every time this happened.