Alabama's Jefferson county files plan to exit $4.2 billion bankruptcy

[TexasTowelie]

Source: AP

BIRMINGHAM, Ala. — Attorneys for Alabama's Jefferson County have filed a 101-page plan that would allow it to exit the largest municipal bankruptcy in American history.

The plan filed Sunday calls for cutting the county's $4.2 billion debt by more than $1.2 billion and raising sewer rates annually by 7.41 percent for four years. Rates would rise by 3.49 percent annually for an undetermined amount of years after that.

Most of the $4.2 billion debt stems from bonds that funded sewer system repairs.

The plan must be approved by creditors and ultimately Thomas Bennett, U.S. Bankruptcy Judge for the Northern District of Alabama. A hearing is scheduled for Aug. 6.

Read more: http://lubbockonline.com/filed-online/2013-06-30/alabama-county-files-plan-exit-42b-bankruptcy

[EVDebs]

1. Brought to us by derivatives...

Ah, the wonders of casino capitalism. Derivatives will be the ruin of us yet.

[ancianita]

2. Too bad. Seems like a pretty high rate for such a raw deal. Why not outright refuse to pay the debt?

Remember this Rolling Stone article that listed Jefferson County and all kinds of other areas across the country as scam victims of banks? I just don't understand why they should roll over for this. Isn't there a states attorney or attorney general who would at least try to make a case against this legalized theft?

"...J.P. Morgan Chase, Bank of America, UBS, Lehman Brothers, Bear Stearns, Wachovia and more – these three Wall Street wiseguys spent the past decade taking part in a breathtakingly broad scheme to skim billions of dollars from the coffers of cities and small towns across America. The banks achieved this gigantic rip-off by secretly colluding to rig the public bids on municipal bonds, a business worth $3.7 trillion.

...In the bankruptcy of Jefferson County, Alabama, we learned that Goldman Sachs accepted a $3 million bribe from J.P. Morgan Chase to permit Chase to serve as the sole provider of toxic swap deals to the rubes running metropolitan Birmingham – 'an open-and-shut case of anti-competitive behavior,' as one former regulator described it..."

http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620

This doesn't sound like much of a win for Alabamans.

[alcibiades_mystery]

3. It's a shit deal, no pun intended

They got snookered and outright robbed by criminals at all levels, both within their own government and with the underwriters and everywhere else. Unfortunately, municipalities still need to finance costs for any number of expenses, and they can't do fuck all (because they can't get cent one) until they discharge the bankruptcy. It's a fucking outrage of monumental proportions.

[ancianita]

4. Seriously, though. Nothing would happen to them except that no one would lend to them again. But

so what. If I were a county resident I'd say that's an austerity worth living through. I'd be much more willing to pay the exact same levies toward a whole new budget for maintenance and projects, and say fuck the debt liabilities to Wall St. scammers.

[TexasTowelie]

5. View#420

on this thread.

Break out the catnip!

[SamKnause]

6. Sewer rate increases

So you will have to be rich to take a shit in Alabama ??????

7.41% increase for 4 years.
3.49% annually for an undetermined amount of years after that.

Senior citizens on Social Security will not be able to afford the increase.
Disabled people on Social Security Disability Insurance will not be able to afford the increase.
The underemployed will not be able to afford the increase.
The unemployed will not be able to afford the increase.
People living paycheck to paycheck will not be able to afford the increase.

Red states are raising property taxes on homeowners, fees, and taxes on utilities and public services.

Is their goal to increase the population of the homeless in this country ???????

[JHB]

7. Their goal is redirecting any available dollars into their own accounts...

...by hook or by crook, a d usually both.

No, the goal isn't specifically more homeless. But as long as the homeless aren't on their balance sheet, it's Somebody Else's Problem.

[piedmont]

8. Re: your comment on red states increasing taxes and fees--

Jefferson County is a very blue county in a red state, and it was Democratic politicians (and one Republican who crossed party lines) that signed off on these deals. Between this scandal and the casino gambling scandal the local Democratic Party in Alabama may not ever recover in our lifetime.

[SamKnause]

9. Red States

Thanks for your input.

You are correct.

I was referring to states.

I am not familiar with the individual counties in each state.

Sorry to hear that the Democratic politicians stabbed you in the back.

It sickens me.

The parties are melting into one gigantic party of pus bags.

You can count the decent politicians in the U.S. on one hand.

I live in Ohio and I am sure I don't need to tell you about all the destructive shit that is happening in my state.