Money and Finance
- Hedge Fund Vs. Sovereign: How U.s. Courts Are Upending International Finance
Link to article: Hedge Fund vs. Sovereign There aren’t many institutions powerful enough to bring a sovereign nation to its knees. Most of those that are wield their power with great care; the rest are dangerous fundamentalists. Last week, the...
- There's No Formula For Fixing Detroit, And That's A Good Thing – By Justin Fox
The news of Detroit's bankruptcy has brought countless explanations of what went wrong, some of them pretty interesting. But the main point of a bankruptcy — especially this bankruptcy, which has been looming for decades — is to get a fresh start....
- Weschler Rise From Grace Leads To Role Advising Buffett
Ted Weschler’s first job after college was at chemical maker W.R. Grace & Co. (GRA) In 2007, six years after the company filed for bankruptcy, his hedge fund held 15 percent of the shares. That’s when he called Joe Rice. Rice, a South Carolina...
- Calpers 1% Annual Return Adds To California Ills
With three California cities electing to file for bankruptcy in the past month, in large part due to underfunded pension obligations, the last thing California needs right now is more bad pension news. Which is unfortunate, because the California Public...
- Ireland's Former Richest Person Declared Bankrupt
Thanks to Matt for passing this along. DUBLIN - A famed entrepreneur who was once rated Ireland's richest person was declared bankrupt Monday as a bank pursues him for debts exceeding €2.1 billion ($2.7 billion). Lawyers for tycoon Sean Quinn withdrew...
Money and Finance
Stockton, CA files for bankruptcy
In opting to become the nation's largest city to seek federal bankruptcy protection, this river port of 290,000 took a rare financial step of last resort after struggling with the economic downturn, soaring pension costs and contractual obligations.
Thirteen cities, counties and other government entities filed for bankruptcy protection last year — the highest annual level in nearly two decades. Stockton was the seventh U.S. municipality to file this year and the first California city since Vallejo, which sought protection in 2008, according to James Spiotto, a Chicago bankruptcy attorney who tracks municipal bankruptcies.
"Filing bankruptcy is time-consuming, expensive and complicated," said Spiotto, noting that Vallejo spent millions of dollars alone on attorneys and other bankruptcy professionals. "And you never get the results you desire."
That's why experts are divided on whether other financially struggling cities, towns and other government entities will follow Stockton to bankruptcy court. Spiotto said it will be hard and expensive for Stockton to obtain financing.
Others say bankruptcy comes with non-monetary costs, too.
- Hedge Fund Vs. Sovereign: How U.s. Courts Are Upending International Finance
Link to article: Hedge Fund vs. Sovereign There aren’t many institutions powerful enough to bring a sovereign nation to its knees. Most of those that are wield their power with great care; the rest are dangerous fundamentalists. Last week, the...
- There's No Formula For Fixing Detroit, And That's A Good Thing – By Justin Fox
The news of Detroit's bankruptcy has brought countless explanations of what went wrong, some of them pretty interesting. But the main point of a bankruptcy — especially this bankruptcy, which has been looming for decades — is to get a fresh start....
- Weschler Rise From Grace Leads To Role Advising Buffett
Ted Weschler’s first job after college was at chemical maker W.R. Grace & Co. (GRA) In 2007, six years after the company filed for bankruptcy, his hedge fund held 15 percent of the shares. That’s when he called Joe Rice. Rice, a South Carolina...
- Calpers 1% Annual Return Adds To California Ills
With three California cities electing to file for bankruptcy in the past month, in large part due to underfunded pension obligations, the last thing California needs right now is more bad pension news. Which is unfortunate, because the California Public...
- Ireland's Former Richest Person Declared Bankrupt
Thanks to Matt for passing this along. DUBLIN - A famed entrepreneur who was once rated Ireland's richest person was declared bankrupt Monday as a bank pursues him for debts exceeding €2.1 billion ($2.7 billion). Lawyers for tycoon Sean Quinn withdrew...