It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Judge Meredith Jury of the U.S. Bankruptcy Court for the Central District of California, said the city of 210,000, located 60 miles east of Los Angeles, was eligible for bankruptcy protection "as a matter of law based on incontrovertible facts."
The tentative ruling came despite objections by the California Public Employees' Retirement System, or Calpers. The $260 billion pension fund is the city's biggest creditor.
Originally posted by wrabbit2000
We need a Constitutional Amendment added in this nation. As I've thought about it, nothing less would do or be legal either. It would require a properly ratified amendment.
However, it should require the resignation from position of *EVERY* elected individual within a municipality that declares and is allowed bankruptcy.
I'd prefer more than just that ...but we can't outright gut the whole city or county down to the guys cutting lawns or supervising it.
NO elected official should be allowed to remain though. There is NO more definite statement of fail than a city or government of any kind to outright declare bankruptcy.
What they're saying is...when even taxing, fining and assessing fees couldn't feed the ravenous monster of spending anymore....nothing at all could. Good..their retirements should be part of the loss as well.
Calpers argues that it should not be treated like other creditors and must be paid in full because of California state law. Bondholders argue that federal bankruptcy law trumps state statutes and say Calpers should be forced to fight with other creditors over how much they are paid under an exit plan.
The issue, which is also likely to be central in the bankruptcy cases of Stockton and Detroit, could reach the U.S. Supreme Court.