Forum Post: JP Morgan Chase, Democrats team on biggest municipal bankruptcy in history.
Posted 12 years ago on Nov. 11, 2011, 7:19 a.m. EST by TheKing
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BIRMINGHAM, Ala., Nov 10 (Reuters) - From corrupt and incompetent local officials to Wall Street's credit crisis and toxic bonds, there was plenty of blame to go around on Thursday, a day after Alabama's Jefferson County declared the biggest municipal bankruptcy in U.S. history.
The county, once a leading industrial hub in the U.S. Deep South, filed for bankruptcy court protection after failing to reach final agreement on terms of a preliminary deal with creditors led by JPMorgan Chase & Co in September to settle $3.14 billion in sewer-system debt.
http://mobile.reuters.com/article/idUSN1E7A920B20111111?irpc=932
Larry Langford, a Democrat and former mayor of Birmingham, was sentenced to 15 years in prison last year for his role in corrupt business deals that fueled the multibillion-dollar sewer debt. Langford presided over the county commission during the height of the bond swaps that led to the run-up of the massive debt.
Great Post! must see!
There's more to come. The municipal systems are so fragile - be prepared for no clean water, or utilities. We are headed for a whole new baseline.
All of North America is facing this problem. I have an insider tip. Investors are banking on high volumes of sales with the new improved 5 gallon bucket complete with NASA approved ergonomic handle. I really want a red one with racing strips on it.
America: over extended at every level.
The shills/government perpetuated everything. They do the dirty business for banks.
I'm with you. Sadly though, we've all done it to our selves. No one complains when the ponzi scheme works for them, now that the money is gone, all that's left is debt.
When banks and government team up, the results are disasterous.