Stockton Bankruptcy To Hit City Retirees Hard
The Associated Press
June 27, 2012
The city of Stockton, CA, will soon be the largest U.S. city to file for bankruptcy. The city manager expects Stockton to file for Chapter 9 bankruptcy on Friday, June 29, a move that many believe will hurt city residents and especially city employees whose health benefits and pensions helped drive the city towards insolvency.
Michael A. Sweet, a partner and member of the firm’s Financial Restructuring and Bankruptcy Department in San Francisco, recently spoke with the Associated Press about Stockton’s current situation.
“What’s going on in Stockton is endemic to what’s going on all over the state and the country,” said Sweet. “Local governments are hurting and strained under the current pension and compensation systems. These systems are not appropriate for the type of economy this country has evolved into.”
This article also appeared in the following news sources:
The Washington Post
National Public Radio
The Huffington Post
San Francisco Chronicle
CBS San Francisco