Jefferson County (Alabama) Files Largest Ever Chapter 9 Filing

Jefferson County Files Largest Ever Chapter 9 Filing

www.zerohedge.com

According to the Tweeter account of Birmingham News, "Jefferson County Commission makes motion to file bankruptcy." We translate this to mean that the "avoided bankruptcy" state has just metamorphosed into simple "bankruptcy" - granted one which will be the largest municipal bankruptcy in history.

JEFFERSON COUNTY COMMISSION VOTES FOR RECORD MUNI BANKRUPTCY, commissioners vote 4 to 1 to screw over JP Morgan

(visit the link for the full news article)

Take that JPMorgan!

As to why it impacts JP :

This means that JP Morgan is now on the Unsecured Creditor Committee of the two biggest bankruptcies of 2011: MF Global and JeffCo as well.

But not just JP...

JEFFERSON COUNTY'S MAJOR SEWER CREDITORS :
JPMorgan Chase & Co.
Bank of America
Regions Bank
Lloyds Bank of Scotland
State Street Bank of Boston
Societe Generale of Paris
Bank of Nova Scotia in Canada
The Bank of New York Mellon
Financial Guaranty Insurance
Syncora Guarantee, Inc.

And as ZH says, it's only the beginning... many cities held for the last 3 years, but now money is running out... fast.

And will this bankruptcy trigger CDS?

Jefferson County is a big county... with 658k people in it. How long will people stay there, I wonder.

And from Meredith Whitney, the ``expert``...

On December 19, 2010, Whitney was accused of stating that between fifty and a hundred counties, cities, and towns in the United States would have "significant" municipal bond defaults starting in 2011, totaling "hundreds of billions" of dollars in losses.

From her today :
State, muni crunch "more personal" than credit slump - Whitney

U.S. state and municipal funding problems will have a more personal impact on Americans' lives than the credit crisis and will reduce the value of their homes, Wall Street analyst Meredith Whitney forecast on Wednesday.

Whitney, who famously predicted the U.S. banking crisis in 2007, also offered insight on possible infrastructure investment in a "golden triangle" of the American heartland that was less affected by the U.S. housing crisis.

"Now that the states are under duress, the easiest thing for them to do is cut aid to municipalities ... cutting services, considering privatizing, cutting hours for parks and libraries. This is where it gets personal ... if you have lower social services, the value of your home is less," she told participants in the American Water Summit, which attracts those from water-related global and U.S. concerns.

"This situation ... will be so much more personal than the credit crisis," she added.

www.zerohedge.com
(visit the link for the full news article)

Let them fall!

Crash JP Morgan

Crash BofA

The can will only be kicked down the road for so long, well my friends, the road is ending very soon

Jefferson County where?
The Jeff.Co. where I live in Kentucky?

Alabama

Jefferson County Files Biggest U.S. Municipal Bankruptcy

Jefferson County, Alabama, filed the biggest U.S. municipal bankruptcy after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart.

The county, home to Birmingham, the state’s most-populous city, listed assets and debt of more than $1 billion in Chapter 9 papers filed today in U.S. Bankruptcy Court in Birmingham.

and

Former Commissioner Larry Langford was convicted of accepting bribes in connection with the sewer financing, and two associates pleaded guilty in the scheme.

Two former bankers at JPMorgan are fighting a U.S. Securities and Exchange Commission lawsuit alleging that they made $8 million in undisclosed payments to friends of commissioners to secure a role in the deals. JPMorgan separately agreed to a $722 million settlement with the SEC.

Wheeeeew boy!

Originally posted by kdog1982
Jefferson County where?
The Jeff.Co. where I live in Kentucky?

Good point. Jefferson County, ALABAMA...

Sorry about that.

Originally posted by Vitchilo

Originally posted by kdog1982
Jefferson County where?
The Jeff.Co. where I live in Kentucky?

Good point. Jefferson County, ALABAMA...

Sorry about that.

Ok ,thanks.
Wish it was here taking our crooks out!
They are just as bad.

When the Occupy Birmingham movement began, it immediately attracted people who work closely with the Sewer Board to protest and keep attention on this issue.

That is what the movement is about, and I don't know about your town, but here in my town, Birmingham, it is obvious why it is needed.

Probably won't have that big an impact on banks, they're usually first in line to get paid, before city pensions, contractors, public workers, etc. Now, if more counties or cities start filing bankruptcy, that would quickly change for those banks.

Iceland shows you how it's done - let the banks fail and start over from scratch.
Lesson from Iceland's 2008 Financial Crisis: Let Banks Fail