Cities eye Stockton bankruptcy ruling
A judge cleared the way for the city of Stockton in California to enter bankruptcy today. That makes the city the largest in the U.S. to do so.
"Obviously the folks who have the most at stake are the bondholders," says Michael Sweet, a bankruptcy lawyer with Fox Rothschild in San Francisco.
But the other 800-pound gorilla in the room? That would be members of the city's pension plan. Stockton promised to what they owed to pensioners but "the judge said he isn't sure that the city could do that and still meet its requirements under the bankruptcy law and get a plan confirmed."
And that's why so many other cities across the country are paying close attention to Stockton today. "There are cities across the country that are suffering what Stockton suffered with revenues going down or at least remaining stagnant at a time when costs are going up for both the pension plan and for health care," said Sweet. Back when the economy was booming, these cities "made promises to their employees for extraordinary pensions and defined benefit programs and now they're having trouble meeting the cost of those promises."
So what's next for the city of Stockton? The city next has to present a bankruptcy plan that would need to be approved by a judge. It would detail how the city will get itself out of bankruptcy. That process could take about six months to a year. But if there is an appeal, the process could drag on for much longer.
Snowdon walkers injured in falls
Once Again, Polls Show Attitudes Toward Guns Returning To Pre-shooting Levels
Immediately after previous shootings, polls shifted somewhat — then trended back toward earlier levels. A look at recent polls shows that happening again for the most part.
Taggart tattoo wins Scottish award
Caroline Kennedy 'next Japan envoy'
German Prince Plans To Put Bison Back In The Wild
The prince's dream of reintroducing European bison, or wisent, into Germany's most densely populated state will soon be reality. It will be the first time in nearly 300 years that these creatures will roam Western Europe. But not everyone is as excited as the prince.
German Prince Plans To Put Bison Back In The Wild
The prince's dream of reintroducing European bison, or wisent, into Germany's most densely populated state will soon be reality. It will be the first time in nearly 300 years that these creatures will roam Western Europe. But not everyone is as excited as the prince.
O'Leary gives McNamara 200,000 euros
What's In A Name? More Drugs For Babies If It's GERD
Some pediatricians are worried that babies who spit up are being misdiagnosed with gastroesophageal reflux disease, and that's causing parents to opt for unnecessary prescription medications. Researchers found that using the word "disease" to describe spitting up can have a powerful effect on parents.
VIDEO: Is Kashmir the new Chamonix?
Tanker bomb attack at Iraq police HQ
Warrington 54-20 London
PSNI attacked at Derry Easter rally
Sunderland reject Di Canio concerns
Police open fire in market town
U.S. Adds F-22 Fighter Jets To Military Exercise In South Korea
The United States has sent two F-22 Raptor fighter jets to take part military drills in South Korea, a move a Pentagon spokesman told the AP is meant to show U.S. commitment to the defense of the region from its North Korean neighbor.
Liberty wins Irish National at 50-1
Cardiff 3-0 Blackburn
Caroline Kennedy To Be Ambassador To Japan? Talk Grows
The daughter of the nation's 35th president has been talked about as a potential envoy to Tokyo. Now, multiple news outlets say they've been told she's President Obama's choice and is being vetted for the job.
» E-Mail This » Add to Del.icio.us




