San Bernardino, California Bankruptcy

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#1 Thu, Nov 29, 2012 - 11:15am
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So Cal, CA
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San Bernardino, California Bankruptcy

New forum so I can colect links to stories, post commentaries, etc. Just today, there is a story in the local paper that discusses the tension and ongoing conflict between Calpers, a massive creditor, and the City of San Bernardino, the debtor, who owes past pension payments which are huge, as well as ongoong pension payments which today are $6.9 million in arrears. Here is the link: https://m.pe.com/penterprise/db_101732/contentdetail.htm?contentguid=CPs... The reason this particular bankruptcy is so critical is because the stakes are so hig with regard to future payments. If the city can escape the past due debts, or haircut them, or restructure them downward suficiently, then other cities all accross California will see bankruptcy as a viable option to escape their huge debts to Calpers. Calpers knows this, and wil fight this tooth and nail. If Calpers wins, then the City will simply become a tax collector for the quasi-sovereign!CALPERS, in essence, the City will function solely as a mechanism to gather tax revenue for payment to Calpers, rather than an organization designed to provide benefits to its citizens. It is literally a back-door tax collection scheme for payment to a special class of people. This is not going to end well for either Calpers or the City. Since the stakes are so high, there will be lots of press coverage, and I will share what I can right here.

Edited by: California Lawyer on Nov 8, 2014 - 5:27am

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