[Homestead] More economic fallout
Lisa K.V. Perry
lisakvperry at gmail.com
Thu Apr 10 15:28:26 EDT 2008
The city of Birmingham, AL is in financial trouble:
Jefferson County Advisers Meet With U.S. Officials (Update1)
> By William Selway and Martin Z. Braun
> April 10 (Bloomberg) -- Financial advisers for Jefferson County, Alabama,
> met yesterday with Bush administration and Federal Reserve officials as the
> county contends with rising borrowing costs that have pushed it close to
> The advisers for Alabama's most-populous county were in Washington to keep
> federal officials informed of its negotiations with creditors, U.S.
> Representative Spencer Bachus<http://search.bloomberg.com/search?q=Spencer+Bachus&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>said. He said the meetings weren't an attempt to arrange a federal bailout.
> ``It appears Jefferson County is working diligently to negotiate a
> settlement and avoid bankruptcy,'' Bachus said in a statement. ``Activities
> in these markets can move very rapidly, so it is prudent that appropriate
> federal officials be informed of the Jefferson County situation.''
> Jefferson County, home to Birmingham, is reeling from interest rates on
> variable-rate bonds that jumped as high as 10 percent when the auction-rate
> securities market collapsed and the county's bonds, backed by ailing
> insurers FGIC Corp. and XL Capital Assurance, were shunned by investors.
> Without restructuring its bonds, interest costs on its sewer debt may reach
> $250 million, nearly twice the $138 million the system produces in revenue,
> according to county Commissioner Bettye Fine Collins<http://search.bloomberg.com/search?q=Bettye+Fine%0ACollins&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>.
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