Vallejo, a city about 25 miles north of San Francisco, offers a sneak preview of what could be the latest version of economic disaster. The New York Times reports.
One thing is clear from the debate over whether a bankruptcy law should be enacted for states—bankruptcy as a concept and a process is misunderstood.
The first time Illinois tried to bail out its teetering pension fund by borrowing billions of dollars, it ended in disaster. Nevertheless, the state is trying again. The New York Times reports.
State pension funds, facing a potential multitrillion-dollar shortfall, find themselves in the center of a four-way battle: Employees and retirees expect to be paid their promised benefits; the pension systems have clear obligations but may not have the resources to pay them; politicians are looking for ways to resolve the underfunding and balance the burden among retirees and workers; and state taxpayers, challenged to provide for their own retirements, resent the additional tax load.
US lawmakers have expressed opposition to the idea of allowing US states to seek bankruptcy protection to alleviate pension underfunding and other debt burdens. The FT reports.
Imagine getting a bill for $1 trillion, or $3 trillion, with a due date in the next 30 years. This is a situation faced by all 50 states, whose pension funds are underfunded by $1 to $3 trillion, depending on whose estimates you believe.
While some experts see this as an opportunity, skeptics says it's a new financial crisis in the making and that muni bonds should be avoided. Tell us what you think.
Blockbuster is preparing to sell itself after failing to secure more cash from creditors to exit bankruptcy protection, according to a report that appeared in The Wall Street Journal Thursday.
As states and local governments continue to struggle with fiscal issues, they will be required to begin making better disclosure of their unfunded pension liabilities. This is good news that the depth of the fiscal problems can be analyzed and the investing public will have full disclosure on which to make prudent and informed investment decisions.
As Illinois battles with the country’s second-largest budget deficit—some $13 billion—its treasurer, Dan Rutherford, told CNBC Tuesday that bankruptcy, an idea being floated to close budget gaps, would disrupt the bond market and break trust with vendors who do business with the state.
Collectively, states have budget deficits of more than $130 billion, unfunded pension and healthcare plans of more than $1 trillion and billions of dollars of unpaid bills to public schools and universities, hospitals and social welfare programs...States are in crisis and floundering to find a solution.
Changing federal bankruptcy law to allow individual states to file is an idea that appears to be gathering momentum—and opposition.
Sometimes even the most recognizable companies should be banned from the market.
Should Congress consider creating a legal regime to enable states to restructure their obligations? With the cacophony of alarm bells as our states sit insolvent thanks to enormous unfunded healthcare and pension liabilities and municipal bond obligations, the answer clearly is yes.
Although current law does not allow states to go bankrupt, some experts believe it should be permitted so the federal government can avoid bailing out states faced with massive budget shortfalls and the end of stimulus funds in 2011.
With anemic property tax revenues and forecasts of more dire financial times ahead, some experts and elected leaders fear that more localities may have to at least consider bankruptcy. The New York Times reports.
The finances of some state and local governments are so distressed that some analysts say they are reminded of the run-up to the subprime mortgage meltdown or of the debt crisis hitting nations in Europe. The New York Times reports.
What follows is a list of the 15 action movie stars who fell from box office dominance to the lowest rung on the ladder. Here are 15 action movie stars who got their financial butts kicked.
GM history in the second half of the 20th century is a story of executive arrogance, missed opportunities, poor decision-making and reckless finance.
Merrill Lynch was the world's largest brokerage but in September 2008 – at the height of the financial crisis, it ceased to exist as a separate entity when it was acquired by Bank of America. How could this American institution collapse almost overnight? Now the story is being told.