NEW YORK TIMES / AP: Leaders of Alabama’s largest county have rejected a settlement with Wall Street to pay off more than $3.1 billion in debt.
Five members of the Jefferson County Commission voted unanimously Friday to reject the settlement offer.
Jefferson County has been trying to avoid filing bankruptcy over more than $3.1 billion in sewer system debt for three years. Its problems stem from a mix of outdated sewer pipes, the economy, court rulings and public corruption… (more)
EDITOR: Bankruptcies like this will bring discipline to Wall Street underwriting of municipal debt. The “Too big to fail” concept extends to government debt and undermines the capitalistic system. Ironically, once the county goes through bankruptcies, the Wall Street firms will vie to underwrite their next bond issue!
