California bankruptcies spark concern over Fresno's finances
Could the City of Fresno follow Stockton, Mammoth Lakes and San Bernadino in declaring bankruptcy? According to Barron's, Wall Street experts remain concerned about Fresno's financial position, thanks to the city's long term labor contracts and limited revenue options. They say the downsides of filing for Chapter 9 protection will likely serve as a deterrent for most cities, but Fresno's case is still a concern.
With three California cities opting to file for bankruptcy protection within the past month, many are worrying this could open the floodgates to more municipal bankruptcies. But Citi strategists say the bankruptcy option still brings enough stigma and costs to deter other troubled cities. Citi notes that the cases of Stockton, San Bernardino and Mammoth [...]