Notes between Speaker of the House and former Gov. discuss 38 Studios deal
A day before the Rhode Island House of Representatives is set to vote on
a $8.2 million budget that includes money to pay back "moral obligation bonds"
from the Curt Schilling's failed video game company, handwritten notes revealed
that former Governor Carcieri, Speaker of the House Gordon Fox, and Senate
President Piava-Weed personally assured the bonds in a phone call with Moody's
The notes which log calls with Moody's Investors Service and Standard
& Poor's were taken by First Southwest Company, a group now named as a
party in the Economic Development corporation's lawsuit against the actors in
the 38 Studios deal.
The notes have former Governor Carcieri saying that while 38 Studios may
be a risk it was worth taking.
According the notes, Speaker of the House Gordon Fox said there was no opposition
to the deal in the legislature and the state needed to do something to "jump
start the economy."
When questioned about public criticism to the deal Carcieri notes the
deal would not get so much publicity if it were not in the middle of a
campaign. At the time political candidates for Governor Lincoln Chafee and Frank
Caprio were campaigning against the deal.
In the notes, Speaker Fox says that it is the "silly season" of politics.
The conversation took place in early September 2010, 2 months after the 38
Studios deal was officially approved in July.
Carcieri and Fox also answer questions about a failed bond to American Express and highlight that the moral obligation bond is different.