"We still feel we have a lot to offer, but certainly everyone is concerned about what’s happening on Wall Street,” he said.
Among Jersey City's 24,000 financial-sector jobs, 1,700 are at Lehman Brothers , 1,500 at Merrill Lynch and 200 at AIG .
“Four weeks ago when this started to unravel, we felt we were in jeopardy of losing a lot, maybe all, of those jobs,” he said. “We haven’t lost any jobs yet. Bank of America came in and bought out Merrill Lynch, Barclay’s of London has stepped into Lehman Brothers and AIG was helped by all of us."
Healy said Jersey City is not currently having cash-flow problems, but he expects to see some in the near future.
“Normally to do capital improvements, fix our parks, fix our buildings, those types of expenditures...(the city will) go out for bonds. Right now we’re hearing that market’s going to dry up...So we and every other government…(are) probably going to have to tone down (our) expectations for capital improvements.”
Credit Concerns in the Midwest
Franklin, Ind., an industrial town south of Indianapolis, is starting to feel the reverberations from Wall Street, Fred Paris, the town’s mayor, told CNBC’s “Squawk on the Street.”
Automotive-related businesses are seeing fewer orders and the insurance company that insures the city’s bonds has been downgraded.
“We just got notice that the insurance company that insures those bonds' rating has been lowered, which also affects our ability as a city to borrow money,” he said.