On Monday, May 23rd, Dan Rutherford, the Treasurer of Illinois, began a crusade against the incurrence of more debt. Specifically, he announced that the State of Illinois is on the verge of financial disaster and, in a concise report, he disclosed certain important fiscal facts about Illinois.
The imminent end of the Fed's quantitative easing as well as news that Standard & Poor’s had downgraded the outlook for Italy's ratings to negative were behind the stock selloff in Europe in morning trade, analysts told CNBC.com Monday.
Discussing the snapping up of Lehman Brother's distressed debt, with Kyle Bass, Hayman Capital Partners.
Lenny Dykstra, an outfielder for the New York Mets and Philadelphia Phillies known by the nickname "Nails," has been indicted for bankruptcy fraud and embezzlement from the bankruptcy estate.
Last Friday’s New York Times ran an article featuring my hometown, Croton-on-Hudson, New York. Croton-on-Hudson is located in Westchester, County and filled with hardworking men and women who were attracted to the town due to its vibrant community, good neighbors and strong school system.
While states are not too big to fail, they are too big to save - at least if the federal government is asked to do the saving.
Blockbuster announced Friday that an auction process for the company's sale has been approved by the U.S. Bankruptcy Court for the Southern District of New York.
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.