Pensions No Sacred Cow in Bankruptcy: Stockton JudgeOctober 2, 2014 – In The News
Michael A. Sweet was quoted in the Investor's Business Daily article, “Pensions No Sacred Cow in Bankruptcy: Stockton Judge.” Full text can be found in the October 2, 2014, issue, but a synopsis is below.
The California Public Employees’ Retirement system (CalPERs) should be treated no differently than any other creditor, Judge Christopher Klein said at a hearing on Stockton’s bankruptcy case.
CalPERs will likely try to strike a deal with the city in a situation similar to the one playing out in San Bernardino, said Michael Sweet.
"CalPERS has the most to lose by having this go all the way up if it's appealed," Sweet said. "Their argument is less likely to carry the day and I think they know that, which is why they are likely working behind the scenes to reach agreements."