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Keyword: bankruptcy

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  • The Right to National Bankruptcy

    07/18/2012 2:54:31 PM PDT · by BfloGuy · 1 replies
    The Mises Institute ^ | 18 July 2012 | Andrew Foy, M.D.
    People like me who believe the government should play a less active role in subsidizing healthcare costs are often asked the question "Do you believe healthcare is a basic human right?"While this is an important philosophical question to ponder, it often lends itself to unexamined answers and political demagoguery. The imprecise answer "yes" to this question by most governments around the world (including the United States) has served mainly to accelerate healthcare-cost growth and benefit the medical-industrial complex at the expense of the public. To appreciate this point, one must consider the reality of what having a right to...
  • Compton {California} To Consider Bankruptcy

    07/18/2012 7:36:08 AM PDT · by BenLurkin · 28 replies
    CBS) ^ | July 18, 2012 6:07 AM
    The city of Compton is reportedly facing bankruptcy following an announcement at a City Council meeting Tuesday night. During the four-hour meeting, two senior financial officials told council members they have to decide by September 1 whether or not to file for bankruptcy. The municipality has accumulated a $43 million deficit with no reserve. Funding for the city is expected to run out by the beginning of September. The Council added to Compton’s accumulated deficit on July 10 when it adopted a $161 million budget with a $9 million projected deficit. “Either you’re gonna pay these bonds . . ....
  • City of Compton (California) may declare bankruptcy by September: officials

    07/18/2012 3:01:10 AM PDT · by Zakeet · 49 replies
    Reuters ^ | July 18, 2012 | Ronald Grover and Jim Christie
    The City of Compton, a city of 93,000 people located on the outskirts of Los Angeles, must decide by September 1 whether to seek bankruptcy, according to its two most senior financial officials. Such a move would see it join a growing number of deficit-hobbled California cities that have used the filing to restructure onerous debt loads. Compton, which has an accumulated $43 million deficit and has depleted what had been a $22 million reserve, will run out of cash to make its payroll on September 1 at its current cash consumption rate, city comptroller Steven Ajobiewe told the city...
  • California, look to Wisconsin (Cities hoping to avoid bankruptcy should look east for ideas)

    07/17/2012 12:05:12 PM PDT · by SeekAndFind · 6 replies
    Los Angeles Times ^ | 07/17/2012 | Steve Malanga
    Now that three California cities have declared bankruptcy, perhaps it's time to consider the lessons of Wisconsin. One of the reasons Wisconsin Democrats couldn't unseat Republican Gov. Scott Walker in the state's recall election was that his challenger exemplified how Walker's narrowing of collective bargaining privileges for government workers benefited the state. As mayor of Milwaukee, Tom Barrett had relied on Walker's reforms to balance his city's budget. And Barrett wasn't alone among Wisconsin officials. Walker comfortably defeated Barrett in large part because in the 11 months that the governor's reforms were in effect, Wisconsinites got a good glimpse of...
  • California Cities Go Bankrupt, But Bullet Train Barrels On

    07/14/2012 7:51:42 AM PDT · by SeekAndFind · 12 replies
    Forbes ^ | 07/14/2012 | Bill Frezza, Contributor
    If we didn’t have California as a case study of fiscal insanity, someone would have to invent it. Nowhere else better illustrates what happens when a populist government fully embraces the progressive policies of tax, spend, and promise-public-employees-fantastic-pensions. What else can you say about a state whose leading growth industry is municipal bankruptcies, whose leading export is companies and citizens fleeing tax increases, whose political leading lights include Maxine Waters and Nancy Pelosi, and whose leading economic policy initiative is floating government bonds to “invest” in yet more money-losing boondoggles? Last week the California legislature endeared itself to both construction...
  • Barack Obama Keeps Campaign Promise – Patriot Coal Corp Files For Bankruptcy

    07/10/2012 2:10:04 PM PDT · by KeyLargo · 35 replies
    The Gateway Pundit ^ | July 10, 2012 | Jim Hoft
    Barack Obama Keeps Campaign Promise – Patriot Coal Corp Files For Bankruptcy Posted by Jim Hoft on Tuesday, July 10, 2012, 5:57 AM A one man wrecking crew– Barack Obama promised to bankrupt the coal industry during the 2008 campaign. “So if someone wants to build a coal-powered plant, they can. It’s just that it will bankrupt them.” On Monday Patriot Coal Corp filed for bankruptcy. Barack Obama kept this promise. Reuters reported: Patriot Coal Corp filed for bankruptcy on Monday, the first U.S. coal producer to seek court protection since prices began to plummet as electricity producers turned to...
  • San Bernardino bankruptcy: Why Other California cities could be next

    07/12/2012 9:44:15 AM PDT · by SeekAndFind · 26 replies
    Los Angeles Times ^ | 07/12/2012
    San Bernardino this week became the third California city to seek bankruptcy protection in the last month, and experts say it might not be the last. "There are likely to be more in the future, but it's hard to know, since a lot of struggling cities may manage to work things out,'' said Michael Coleman, a fiscal policy adviser for the California League of Cities. "Some cities may not go into a bankruptcy, but they may dissolve. They may cease to exist.'' Once rare, turning to bankruptcy has become a painful but enticing option for cities whose labor costs and...
  • Peregrine Files For Bankruptcy After $215M Goes Missing, Where Were The Regulators?

    07/12/2012 12:02:34 AM PDT · by STARWISE · 21 replies
    Forbes ^ | 7-11-12 | Halah Touryalai,
    *snip* The accusations began on Monday when Peregrine’s front-line regulator, the National Futures Association (NFA), hit the firm with an enforcement action prohibiting it from doing any more business after finding that it failed to meet key financial requirements. Yesterday the CFTC, a U.S. regulator, got involved and sued Peregrine for fraud by misappropriating customer funds, violated customer fund segregation laws, and made false statements in financial statements filed with the Commission. This isn’t just another firm going bust because for the second time in less than a year customer funds that should have been protected have gone missing amid...
  • The New Normal: Municipal Bankruptcy

    07/11/2012 12:56:40 PM PDT · by Cincinatus' Wife · 22 replies
    National Review Online ^ | July 11, 2012 | Michael Auslin
    Half a million Californians now live in bankrupt cities, as San Bernardino joins Stockton in declaring insolvency thanks to a $46 million deficit (a smaller city also declared bankruptcy this month). Lest anyone think this was a result solely of the 2008 housing bubble and financial crisis, Reuters reports that: the city attorney general James Penman said San Bernardino’s city officials had been submitting false accounting documents for 13 of the last 16 years in an effort to hide the real financial situation of the city. San Bernardino’s mayor since 2006, Patrick Morris, said he had never heard of allegations...
  • San Bernardino Is Third California City to Opt for Bankruptcy

    07/11/2012 6:16:30 AM PDT · by SeekAndFind · 24 replies
    San Francisco Chronicle ^ | 07/11/2012 | Michael B. Marois and Alison Vekshin
    San Bernardino’s City Council voted to become the third California city this year to file for bankruptcy, as it struggles with declining tax revenue, growing employee costs and accounting discrepancies in its ledgers. The council voted 4 to 2, with one abstention, last night to authorize a filing under Chapter 9 of U.S. bankruptcy law. The city of 209,000, about 65 miles (105 kilometers) east of Los Angeles, is so broke it can’t make its Aug. 15 payroll, interim City Manager Andrea Travis-Miller said. “If the employees are not paid on Aug. 15, on Aug. 16 there will be a...
  • Scranton, Pa. Mayor Slashes All Public Worker Wages to $7.25 per Hour, City Effectively Bankrupt

    07/10/2012 7:28:08 AM PDT · by SeekAndFind · 44 replies
    MISH'S Global Economic Trend Analysis ^ | 07/10/2012 | MIKE SHEDLOCK
    Scranton, Pennsylvania's, the state's sixth-most-populous city (population of 76,089 in 2010 census), is down to its last $5,000 and has no way to pay salaries. The mayor wants an immediate tax hike of 29% and 78% over three years. In every sense of the word, Scranton is bankrupt. NPR reports Scranton's Public Workers Now Paid Minimum Wage. The city of Scranton, Pa., sent out paychecks to its employees Friday, like it does every two weeks. But this time the checks were much smaller than usual. Mayor Chris Doherty has reduced everyone's pay — including his own — to the...
  • Yet Another Obama-backed energy firm nears insolvency. Hey, is there an echo in here?

    07/05/2012 2:19:49 PM PDT · by SeekAndFind · 7 replies
    Hotair ^ | 07/05/2012 | ERIKA JOHNSEN
    Breaking news: The Obama administration has once again demonstrated a phenomenal knack for trying to pick economic winners and losers, and invariably picking losers. It's shocking, I know. (Hint: If the government feels the need to "invest" in a venture, because the private sector hasn't or won't ... right away, wrong.)This time, it isn't solar, but rather a Department of Energy-backed geothermal company that's having trouble keeping its head above water. A geothermal energy company with a $98.5 million loan guarantee from the Obama administration for an alternative energy project in Nevada — which received hearty endorsements from Energy Secretary...
  • Another Stimulus Backed ‘Green Energy’ Company Goes Bankrupt ( Pat Stryker mentioned )

    07/02/2012 6:29:29 PM PDT · by george76 · 8 replies
    The Heritage Foundation ^ | June 28, 2012 | Lachlan Markay
    Another stimulus-backed green energy company has filed for bankruptcy, further fueling criticism of Energy Department programs that backed highly-risky investments on the taxpayer dime. Like Solyndra and a number of other green energy investments made under this administration, Abound Solar had a very poor credit rating, but enjoyed a wealth of political connections. ... Abound had to remove an entire rooftop of defective solar panels from the headquarters of one of its top investors, Bohemian Companies, a venture capital firm owned by Pat Stryker. Stryker is particularly noteworthy, given her extensive ties to Democratic causes and politicians, including President Obama....
  • American flag seller files for bankruptcy

    07/01/2012 10:22:18 AM PDT · by OrangeHoof · 48 replies
    Wall Street Journal blog ^ | 06-27-12 | Katy Stech
    When selling the business of patriotism, put emphasis on the red. A little over a week before America celebrates its 236th birthday, Wisconsin-based flag seller Liberty Flag & Specialty Co. filed for bankruptcy protection.
  • Will Los Angeles Follow Stockton's Lead of Bankruptcy? (Stockton, CA might not be the last)

    06/29/2012 9:31:17 AM PDT · by SeekAndFind · 10 replies
    KCET ^ | 06/29/2012 | Jessica Levinson
    The City of Stockton, the now-infamous port city located in Northern California, is declaring bankruptcy. It is the largest U.S. City to take the drastic step of declaring bankruptcy. Stockton is facing a $26 million budget deficit, it has stopped making bond payments, and employee pay, and health and insurance benefits, have been cut significantly. Is Los Angeles next? There is no doubt that it is in bad shape financially -- and I mean really bad shape. But for a number of reasons I do not think Los Angeles will go the way of Stockton. Its leaders, hopefully, still have...
  • Cash-strapped Stockton (CA) votes to file for bankruptcy

    06/27/2012 9:25:58 PM PDT · by Olog-hai · 33 replies
    San Francisco Chronicle ^ | 03:26 p.m., Wednesday, June 27, 2012 | Kevin Fagan
    After desperately trying everything from huge budget cuts to secret negotiations with creditors, the Stockton City Council finally ran out of options Tuesday night and voted to file for bankruptcy. The 6-1 vote was to authorize a day-to-day operating budget, called a pendency plan, that will go into effect when city officials file for Chapter 9 bankruptcy protection in federal court in Sacramento. That filing is expected Wednesday. Stockton, a river port with 292,000 residents, will become the biggest city in U.S. history to vote itself into bankruptcy. The previous largest bankrupt city was Vallejo, which filed in 2008 and...
  • Stockton bankruptcy: 'All that's left is sadness' for city

    06/27/2012 11:28:01 AM PDT · by Oldeconomybuyer · 23 replies
    The Los Angeles Times ^ | June 27, 2012 | by Diana Marcum
    With the city of Stockton moving to become the nation's largest city to seek protection under the U.S. Bankruptcy Code, Tuesday night's City Council meeting was quiet, with an evident sadness on faces in the packed chambers. The working-class port city -- from where many of California's agricultural exports set sail -- lived largely on credit during economic boom times. The city borrowed millions of dollars for ambitious, eye-catching projects in the mid-2000s. Up went a sports arena, hotel and promenade. The city booked a Neil Diamond concert as a kickoff to better times. Houses in sprawling tracts sold quickly...
  • Stockton California Files For Bankruptcy, And Murder Is Surging After Police Corps Gets Gutted

    06/27/2012 9:08:20 AM PDT · by SeekAndFind · 71 replies
    Business Insider ^ | 06/27/2012 | Ben Duronio
    Stockton, California is filing for the largest bankruptcy of any U.S. city in history due to the decline in the once hot housing market and an intake of debt during its boom years. The city has cut more than $90 million in spending over the past few years, specifically in its police department. The city has cut over one quarter of its police jobs, which has led to a "surge in murders," and has created an "emboldened criminal element" in the city. According to police spokesman Joe Silva, the city has had 87 murders since the start of 2011, 29...
  • 7 Reasons Americans Are So Complacent About Our Country's Impending Bankruptcy

    06/26/2012 3:56:44 AM PDT · by Kaslin · 146 replies
    Townhall.com ^ | June 26, 2012 | John Hawkins
    America is on track to go bankrupt. Just like Greece. The signs are all around us. We've lost our AAA credit rating. Trillion dollar deficits are the new normal. The Fed is buying 61% of our own debt. Barack Obama's 10 year budget will leave Americans with “more debt than has been accumulated by all previous Presidents in American history combined.” Nobody on the Left or Right seems to believe we'll ever pay off all of the money we owe. Life as we know it is very close to ending and yet Americans seem to be infected with a tragic...
  • WWII Veteran Being Forced Out of Home and Forced to Exhume Wife’s Body: Needs Your Help

    06/19/2012 1:21:45 PM PDT · by Whenifhow · 17 replies
    http://oathkeepers.org ^ | 6.15.12 | Stewart Rhodes
    Warren C. Bodeker is an 89 year old World War II Army Airborne combat veteran and war hero, living in Montana, who is being thrown off of his own land and thrown out of his own house, by Montana Federal Bankruptcy Trustee, Christy Brandon, with the approval of the U.S. Bankruptcy Court in Montana. And to make matters worse, Warren’s wife Lorna just died of cancer this past year, and is buried there on their land, right next to the house. Warren had planned to live there till he died and then be buried right next to his wife, there...
  • J.C. Penney says President Francis is leaving

    06/19/2012 8:13:51 AM PDT · by ponygirl · 51 replies
    Fox News ^ | 6/18/2012 | AP
    In the latest sign of turbulent times at J.C. Penney Co., the mid-price department store chain said Michael Francis, the former Target Corp. executive brought in to help redefine the brand, is leaving the company. In a terse statement issued late Monday, the department store operator gave no reason for the abrupt departure of Francis, who had been on the job for a little over eight months. As president, Francis was responsible for the marketing of a controversial new pricing plan that aims to get rid of hundreds of sales events. He was also oversaw merchandising and product development. Shares...
  • Akerson Admits GM Bankruptcy Not Well Thought Out

    06/12/2012 10:00:31 AM PDT · by jazusamo · 13 replies
    National Legal & Policy Center ^ | June 12, 2012 | Mark Modica
    General Motors CEO, Dan Akerson, discussed some of the issues plaguing GM's share price in today's Wall Street Journal. Akerson laments a bloated bureaucracy at Government Motors that has not greatly improved since the company's 2009 bankruptcy process. Despite admitting that the bankruptcy was rushed through without proper planning, the Obama-appointed Akerson did not mention the continued UAW overhangs at the company. Regarding an inherited bloated management structure at GM and the inefficiencies that went along with it, Akerson stated, "The good thing about our bankruptcy is that it took only 39 days. The bad news is that bankruptcy took...
  • would it be good to make student loans dischargeable consumer debt?

    06/11/2012 12:25:20 PM PDT · by TurboZamboni · 59 replies
    me ^ | 6-11-12 | TurboZamboni
    IOW, why would it be good to make student loan debt dischargeable in bankruptcy like most other consumer debt?
  • Our View: Democrats bow to labor on bankruptcy (Stockton & other CA cities)

    06/08/2012 12:38:27 AM PDT · by Olog-hai · 5 replies
    Merced Sun-Star ^ | Tuesday, Jun. 05, 2012 | (Editorial board)
    Despite objections from the mayors of California's ten largest cities, the Assembly last week approved Assembly Bill 1692 by Fremont Assemblyman Bob Wieckowski. The bill will make it harder for cities to seek bankruptcy protection. It reneges on a carefully crafted compromise measure approved just six months ago that requires financially beleaguered cities to enter into good-faith negotiations with their creditors—including most significantly, public employee unions—before filing for bankruptcy protection. Stockton was in the midst of that mediation when the bill to undo it began moving in the Legislature. Just how bad are things in Stockton? Well how's this for...
  • Why You Should Be Excited About National Bankruptcy

    06/07/2012 7:43:12 PM PDT · by SteelToe · 9 replies
    Zerohedge ^ | June 7, 2012 | Simon Black
    One of the great absurdities of our modern financial system is that a nation living within its means, i.e. spending less than what it confiscates in tax revenue, is no longer the norm. Living within your means is now considered ‘austerity’. And unfair. Whether in the UK, Europe, or North America, many voters have become so accustomed to the government’s massive role in the economy, they can’t begin to imagine how it could be scaled back. You usually hear heavy objections from people like– “What about roads? If we start cutting budgets, there would be no more roads!” The ‘road...
  • Stockton, Calif. May Be The Next City Driven To Bankruptcy By Bad Management And Unions

    06/04/2012 6:44:33 AM PDT · by SeekAndFind · 16 replies
    Business Insider ^ | 06/03/2012 | Mike "Mish" Shedlock, Global Economic Trend Analysis
    Add Stockton, California (population 292,000) to the list of cities bankrupted because of bad management and over-generous public union wages and benefits. Please consider New Stockton City Hall building seized by Wells Fargo; city preps bankruptcy contingency plan: "The Stockton City Council announced Wednesday that they will look at bankruptcy contingency plans after Wells Fargo seized the new city hall building. The city paid $35 million to buy the 8-story building, but was not able to move in because of its money problems, and recently stopped making debt payments all together. This is the fourth building that was repossessed by...
  • Dewey files for Chapter 11 - biggest US law firm collapses

    05/29/2012 4:38:59 AM PDT · by sunmars · 60 replies
    The crippled law firm Dewey & Leboeuf filed for chapter 11 bankruptcy protection on Monday night and will seek approval to liquidate its business after failing to find a merger partner, marking the biggest collapse of a law firm in US history. "During the first quarter of 2012, the firm was confronted with liquidity constraints that led to the precipitous resignation of over 160 of the firm's 300 partners by May 11," the New-York based firm said. Dewey listed liabilities in the range of $100m to $500m, according to the filing. It had already terminated 433 of its 533 New...
  • Saving Greece, Europe, and the United States (The world's major economies are close to bankruptcy)

    05/24/2012 6:35:30 AM PDT · by SeekAndFind · 5 replies
    American Thinker ^ | 05/24/2012 | By Raymond Richman and Howard Richman
    Greece, Spain, Portugal, Italy, France, and the U.S. are close to bankruptcy, and they all have the same problems: profligate government, large trade deficits, and bewildered economists.Moreover, the G8 statement was ruling out any real solution to the huge unemployment problems of the Southern Eurozone. All of the Eurozone countries with high unemployment rates have negative trade balances (as measured by current account balance divided by GDP), and all the ones that are doing well have positive trade balances. Furthermore, the worse the trade balance, the higher the unemployment rate as shown in the graph below.This is not surprising...
  • Municipal bankruptcy infighting flares anew in California

    05/14/2012 9:08:13 AM PDT · by SmithL · 19 replies
    Sacramento Bee ^ | 5/14/12 | Dan Walters
    When Vallejo declared bankruptcy in 2008, one collateral consequence was a years-long political duel in the Capitol between lobbyists for local governments and those for unions representing their workers. Unions pushed legislation that would have required local governments to get permission from an obscure state agency before filing for bankruptcy – an agency that is and probably always will be dominated by union-friendly Democratic politicians. Although it did not come to pass in Vallejo, unions representing police officers, firefighters and other local workers were worried that a federal bankruptcy judge might be willing to abrogate their contracts and perhaps even...
  • Hostess sends layoff notices to all workers (more-than 18,000)

    05/07/2012 5:21:52 PM PDT · by MamaDearest · 108 replies
    blogs.wsj.com/bvankruptcy ^ | May 7, 2012 | Rachel Feintzeig
    Hostess Brands Inc. on Friday sent out letters notifying its more-than 18,000 workers that they could be laid off in the next two months. The maker of Twinkies and Wonder Bread on Friday mailed out WARN Act notices to all of its employees, a Hostess spokeswoman confirmed to Bankruptcy Beat Monday. The federal WARN Act requires companies to give employees 60 days notice before closing a facility or ordering mass layoffs. However, sending the notices doesn’t mean a company is definitely going to lay off the recipients.
  • Treasury Would Support Bankruptcy Of (Gubment-Owned GMAC/)Ally's ResCap Unit-Official

    05/07/2012 1:18:07 PM PDT · by tcrlaf · 3 replies
    NASDAQ ^ | 5-7-12 | Alan Zibel and Andrew R. Johnson
    The U.S. Treasury Department has agreed to support a bankruptcy filing for the struggling home-loan unit of government-owned lender Ally Financial Inc., if the company chooses to take that route, an official said Monday. A bankruptcy filing for Ally's subsidiary, Residential Capital, has been widely expected in the coming weeks, when the unit faces more than $300 million of bond-related payments. It recently missed a $20 million bond-interest payment, which has a grace period until May 17. ResCap, once one of the largest subprime-mortgage lenders in the country, has been a drag on Ally, which halted plans for an initial...
  • Americans: Too broke to go bankrupt

    05/07/2012 8:01:47 AM PDT · by crosshairs · 18 replies
    Yahoo ^ | 5/7/12 | Blake Ellis
    This year, hundreds of thousands of Americans are expected to be too broke to file for bankruptcy. The average cost to file for Chapter 7 bankruptcy protection, the most common form of consumer bankruptcy, is more than $1,500, according to recent research submitted to the National Bureau of Economic Research. As a result, anywhere between 200,000 and one million consumers are estimated to be unable to afford that steep cost this year. The research, conducted by a group of professors from Columbia University, the University of Chicago and Washington University in St. Louis, examined how bankruptcy filings spiked after people...
  • CALIFORNIA: Dems, unions pushing new local government bankruptcy bill

    04/26/2012 2:03:17 PM PDT · by SmithL · 4 replies
    SacBee: Capitol Alert ^ | 4/26/12 | Dan Walters
    Although a new law to govern bankruptcy filings by local governments is just four months old, Democratic legislators and labor unions are lining up behind a major revision that local officials say would tilt the playing field. . . . The League of California Cities and other local government groups are crying foul, saying it undoes major portions of last year's compromise and gives unions a leg up in pre-bankruptcy negotiations. The City of Stockton is one opponent, telling the Assembly Local Government Committee in a letter that "these changes would dramatically increase the likelihood that mediations will be prolonged...
  • Medicare’s Dirty Little Secret : It's already insolvent

    04/25/2012 4:11:13 AM PDT · by SeekAndFind · 7 replies
    National Review ^ | 04/25/2012 | By Douglas Holtz-Eakin & Jim Nussle
    It’s something everyone knows, but no one wants to talk about: Medicare’s cash position makes Enron’s business model look downright reputable. Medicare is bleeding cash — a fact disguised by creative accounting. According to Monday’s release of the 2012 Trustees Report, in 2011 Medicare took in $260.8 billion in payroll taxes and beneficiary premiums, but spent $549.1 billion in medical services. That means last year Medicare ran a $288.3 billion cash shortfall. And 2011 wasn’t the exception; it was the norm. Since President Lyndon Baines Johnson secured passage of Medicare legislation in 1965, the program has run cash deficits every...
  • Los Angeles insolvency predictable and preventable

    04/24/2012 4:10:08 AM PDT · by SeekAndFind · 6 replies
    OC Register ^ | 04/23/2012 | Brian Calle
    When the nation’s second largest city teeters on the verge of bankruptcy, local elected officials – and especially taxpayers elsewhere – ought to take it as a wake-up call and ponder the evident public policy blunders that laid the groundwork for such an unnecessary scenario. Los Angeles’ potential bankruptcy and $238 million budget shortfall were predictable and preventable. So predictable in fact that former Los Angeles Mayor Richard Riordan warned of the looming crisis in a Wall Street Journal editorial in 2010. Now he says bankruptcy may be just a year away. What underscores this municipal catastrophe is undue influence...
  • (Northern Marianas Retirement)Fund files for Chapter 11 Bankruptcy - (And so, it Begins)

    04/17/2012 1:12:08 PM PDT · by tcrlaf · 11 replies
    Saipan Tribune ^ | 4-18-12 | Ferdie de la Torre
    The NMI Retirement Fund, through its administrator Richard A. Villagomez, filed for Chapter 11 bankruptcy yesterday afternoon. --SNIP-- The lawyer said the Fund's payment of benefits to beneficiaries and operating expenses have averaged approximately $77.9 million per year in the last three years. In contrast, he said, during those same years, the Fund's funding-consisting of employee contributions, returns on investments, and employer contributions-has averaged approximately $30.9 million per year. “As a result of such continuous underfunding, which necessitated withdrawing from its portfolio to cover funding shortfalls, the value of the [Fund's] assets has fallen from $353,475,412 in 2009 to its...
  • Stockton not only California government in financial distress

    04/16/2012 9:48:24 AM PDT · by SmithL · 1 replies
    Sacramento Bee ^ | 4/16/12 | Dan Walters
    It's easy – justifiably so – to beat up on Stockton for spending itself into a fiscal hole so deep that bankruptcy may be its only course. City officials borrowed and spent heavily on a baseball park, a sports arena, a marina and other facilities in hopes of resurrecting a woebegone downtown, and simultaneously boosted their employees' salaries and fringe benefits. At the time, Stockton was seeing a surge of sales and property taxes from a housing boom and the city's politicians and administrators wagered, in effect, that it would go on forever. When the bubble burst, it was left...
  • Twinkies maker Hostess gives unions 'final' offer

    04/14/2012 6:35:54 PM PDT · by Jet Jaguar · 88 replies
    AP ^ | April 14, 2012 | By DAVID KOENIG
    The company that makes Twinkies, Wonder bread and Ding Dongs says it's making a final offer to workers to accept cost-cutting before it asks a bankruptcy court to impose the cuts. Hostess Brands Inc. wants the Teamsters and bakers' unions to accept reduced pension benefits and changes in work rules to lower costs. It wants to outsource some delivery work. The company said Saturday that if the unions reject the offer, it will push ahead with efforts in bankruptcy court to throw out the unions' collective bargaining agreements. A union official warned that could lead to a strike. Hostess Brands...
  • L.A. budget chief warns of bankruptcy without tax hikes, layoffs

    04/07/2012 6:58:30 AM PDT · by Oldeconomybuyer · 14 replies
    Los Angeles Times ^ | April 7, 2012 | By Kate Linthicum
    Los Angeles' top budget official raised the specter of bankruptcy Friday in a sweeping report that calls for new taxes, possible layoffs and the privatization of some city services. Chief Administrative Officer Miguel Santana said rising employee costs combined with flat-lining revenues have left the city in a precarious position. Without cutting costs and coming up with about $150 million in new revenue, "we're facing the complete devastation of city services, including public safety," he said. Santana's report comes a few weeks before Mayor Antonio Villaraigosa is set to release his proposed budget for 2012-13. Villaraigosa spokesman Peter Sanders said...
  • NEWT, Inc. files Chapter 7

    04/05/2012 12:29:28 PM PDT · by GlockThe Vote · 22 replies
    MSNBC ^ | 4/5/2012 | Domenico Montenaro
    In another black eye for Newt Gingrich, the flagship of what's known in Washington as "Newt, Inc.," has filed for bankruptcy. In a Chapter 7 filing in the U.S. Bankruptcy Court, Northern District of Georgia, The Gingrich Group LLC, doing business as the Center for Health Transformation, filed for bankruptcy Wednesday. (Chapter 7 is "the chapter of the Bankruptcy Code providing for 'liquidation,' that is, the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors," as defined by the federal courts.) The vast majority of Gingrich's net worth is tied up in the Gingrich Group....
  • Protesters disrupt financial review board hearing in Detroit

    03/26/2012 8:06:20 PM PDT · by petenmi · 16 replies · 24+ views
    DETROIT - The state-appointed review team tasked with combing through Detroit's money troubles reiterated Monday that the city is facing monumental financial strain and wants Gov. Rick Snyder to continues consent agreement talks with mayor Dave Bing. "We declared that the city of Detroit is under severe financial stress, that there exists within the city a financial emergency," said review team member Conrad Mallett Jr. "We still, I think the majority of the persons on the emergency review board believe that an agreement can be struck between the state treasurer and the mayor that will give the city a go-forward...
  • A City At the End of Its Rope

    03/19/2012 10:27:12 AM PDT · by MichCapCon · 16 replies
    Michigan Capitol Confidential ^ | 3/17/2012 | Anne Schieber
    ALLEN PARK — It was an odd fact to come out at a city council meeting, but again, these are not normal times for the city of Allen Park. On Tuesday night, it was revealed that the city is now paying finance charges on a credit card bill from the Home Depot because it can’t pay off the balance of a couple of hundred dollars. Residents have had enough and now they’ve convinced city leaders of the need for help. This week, the Allen Park City Council stated publicly that it needs an emergency manager to be appointed under Michigan...
  • A Victim of the Regime's White-Collar Payback

    03/08/2012 5:06:56 PM PST · by Tolerance Sucks Rocks · 4 replies
    The Rush Limbaugh Show ^ | March 7, 2012 | Rush Limbaugh
    BEGIN TRANSCRIPT RUSH: Cheryl in Fort Wayne, Indiana, where the Indianapolis Colts' flags are at half-mast. CALLER: (chuckles) Hi, Rush. RUSH: Hi. CALLER: Thanks for taking my call. RUSH: You bet. CALLER: I wanted to talk about the crony capitalism from a personal standpoint for myself. My husband was an engineer with Delphi, which is part of GM. And when the bankruptcy was taken care of and the auto bailouts and the whole thing that Obama's so proud of, what most people don't know is what happened to the salaried retirees from Delphi in the whole deal. The union people...
  • Romney Wants Reexamination of GM Bankruptcy Process

    03/07/2012 1:50:57 PM PST · by jazusamo · 7 replies
    National Legal & Policy Center ^ | March 7, 2012 | Mark Modica
    The Detroit News reports that Mitt Romney wants a reexamination of the General Motors' bankruptcy proceedings. Mr. Romney is quoted as stating, "I think it's important for us to go back and look at what happened and take apart this bankruptcy process. See to what extent the finger of politics was placed on the scales of justice and see if we can't be more fair to the people involved in this process." I agree with the sentiment, but I do have to ask, where were the Republicans on this issue over two years ago? Three years ago I served...
  • Next: Bankruptcy For A Whole Generation (that's what America's University System is doing)

    03/07/2012 10:34:45 AM PST · by SeekAndFind · 23 replies
    Testosterone Pitt ^ | 03/07/2012 | Wolf Richter
    Another student protest, another mass arrest. Monday, thousands of students from all over California snarled traffic during their march on the Capitol in Sacramento. Hundreds of students then flooded the Rotunda of the Capitol, a somewhat raucous affair. Eventually, the California Highway Patrol cleared them out, and 60 were carted off and thrown in the hoosegow for trespassing and resisting arrest.Their problem: tuition increases. Already, tuition in California's state schools has tripled over the last decade, and state budget cuts will induce universities to jack up tuition again. But the state is out of money. And so it's struggling in...
  • 16 Cities Likely to Declare Bankruptcy

    03/07/2012 10:00:02 AM PST · by doug from upland · 23 replies
    16 Cities Likely to Declare Bankruptcy Posted @ 1/12/2011 5:30 AM By Money Tree Posted in [Budget & Spending] | 2 Comments Will 2011 be the year of municipal default? Here is a list of 16 cities likely to face bankruptcy, as reported by Business Insider. San Diego, Ca. Deficit through June 2012 : $73 million Budget in FY2011: $2.85 billion Annualized gap: 1.7% The city's official have tried curbing the deficit by increasing sales taxes, but residents of the city strongly oppose this and have voted it down. San Diego already cut over $200 million over the past two...
  • Obama Foreclosure Scandal

    03/04/2012 4:05:25 PM PST · by Chuckmorse · 33 replies
    A Whig Manifesto ^ | March 4, 2012 | Chuck Morse
    Why has it taken the Obama Administration over three years to address the foreclosure scandal and have they actually addressed it? The scandal, which has been referred to in some quarters as “Foreclosure-gate” involves mortgage companies using a phony practice called “robo-signing” in order to fraudulently foreclose on homeowners. The company behind most of these robo-signings is Mortgage Electronic Registration Systems, known as MERS. This national company has served as a clearinghouse and as a rapid computer generated paperwork processor for the big banks and secondary mortgage investors seeking to process and re-process mortgages. MERS tracks an average of 65...
  • As Stockton struggles, so does California

    03/04/2012 1:31:38 PM PST · by SmithL · 15 replies
    Sacramento Bee ^ | 3/4/12 | Dan Walters
    So Stockton has suspended payments to its bondholders and is seeking to renegotiate its debts in hopes of averting a formal bankruptcy. Sound familiar? It's what Greece, which also is head-over-heels in debt, is doing. The parallels are uncanny. Stockton and Greece spent heavily to keep money flowing to those with political pull, and borrowed heavily, all in the name of societal improvement. Stockton wanted to improve its poor municipal image – crime-ridden and corrupt. So it borrowed to build a new sports arena, a baseball park, a hotel and a marina – the latter so over the top that...
  • Stockton on verge of declaring bankruptcy

    03/04/2012 12:27:38 PM PST · by SmithL · 12 replies
    San Francisco Chronicle ^ | 3/4/12 | Wyatt Buchanan, Chronicle Sacramento Bureau
    Black-and-white photos of Stockton in its heyday - of handsome buildings and bustling streets - flash on the flat-screen television at Henry's Miracle Mile Hair Styling in the city's historic shopping district. Customers also get a sobering dose of color images showing empty, boarded up stores and restaurants that left downtown long ago. Stockton is on the verge of becoming the largest city in the United States to declare bankruptcy, and on a recent weekday the talk inside the old school barber shop centered on the financial havoc at City Hall that threatens the often derided city of nearly 300,000...
  • Bankruptcy judge approves Solyndra bonuses (Taxpayers are still getting shafted)

    02/23/2012 3:47:48 AM PST · by tobyhill · 13 replies · 1+ views
    boston globe ^ | 2/23/2012 | |Randall Chase, AP
    A Delaware bankruptcy judge has approved close to $370,000 in bonuses for certain employees of Solyndra LLC, a solar panel manufacturer that received a half-billion dollar loan from the federal government before declaring bankruptcy.