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Jefferson County Files Largest Ever Chapter 9 Filing
Update Update: Yep, it's official: JEFFERSON COUNTY COMMISSION VOTES FOR RECORD MUNI BANKRUPTCY, commissioners vote 4 to 1 to screw over JP Morgan
Update: according to an update tweet, "Jeffco bankruptcy: Commissioners are now discussing the motion. They have not voted yet." Things are fluid. Stay tuned.
The bad news for JP Morgan just keep on coming. According to the Tweeter account of Birmingham News, "Jefferson County Commission makes motion to file bankruptcy." We translate this to mean that the "avoided bankruptcy" state has just metamorphosed into simple "bankruptcy" - granted one which will be the largest municipal bankruptcy in history. This means that JP Morgan is now on the Unsecured Creditor Committee of the two biggest bankruptcies of 2011: MF Global and JeffCo as well. And so the second major domino after Harrisburg is down. Many more coming.
More as we see it.
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~~ braaaaiinnnnnzzzz ~~
Will this be a true bankrupcy, such that all staff will have to reapply for their jobs? What will happen to the poor unionized employees of the county?
Moving to the tent city in Zucotti Park aka Obamaville
Sheriff Douchen...
What will happen to the poor unionized employees of the county?
Same thing that is going to happen to ALL muni's pension plans.
They base their returns on 8% a year(hasn't been that for QUITE a while),Muni's are 4 Trillion in the hole now.
they can probably pay higher wages now without JPMs cut on the books
Ms. Whitney will have her day!!!
Perfection!
Whitney will be vindicated.
However, I don't like how she bashed the tea party.
what the tea party turned into deserves a good bashing
It was almost inevitable that an organization without any, well, organization, with no clear leaders and with no clear and explicit goals would become co-opted and drift into irrelevant concerns.
What's surprising is that with the recent example of the Tea Party, the OWS people have fallen into the same errors. Who speaks for them? What, exactly, are their goals? I think we could all guess much of what they would say if pressed but by not having a few clear goals they let the idiots who like to play at being revolutionaries discredit them with crackpot fixations. It's too bad.
FYI --
https://sites.google.com/site/the99percentdeclaration/
http://blog.al.com/spotnews/2011/11/jefferson_county_commission_vo_14.html
christmas comes early :) and a bank losing to a sewer is somehow fitting :)
Does this mean that if my septic field goes bad I can claim bankruptcy and get an indefinite loan from the FED at 0.01% to get it fixed and stop paying my kids allowance?
Yes, and blame it on fracking so you can get some Big Oil bucks as a kicker.
"Fresh Start"...that's what a "B" is...orderly wind down....
is hazzard in jefferson county?
And where the hell are them Duke boys!?!?
I would perfer to know where Daisy is, but that is just (hetro) me.
Catherine Bach at 56.
http://photos.tmz.com/galleries/memba_them__4#tab=most_recent&id=86501
mmm... thanks, memories
Talk about money down the shitter! That'll teach them Yankees.
the Jeffersons are moving on up, to a deluxe apartment in the sky
Ahhhhhh, Just Plain Morgue
Cue the fans...and proceed to switch them "ON".
NORMAL PROCEDURE
http://www.amazon.com/Hoodwinked-Economic-Reveals-Financial-Imploded--/dp/0307589927/ref=sr_1_fkmr1_1?ie=UTF8&qid=1320878173&sr=8-1-fkmr1
http://www.rollingstone.com/politics/news/looting-main-street-20100331
Matt Taibbi at his best.
The Ram says it's on like Donky Kong!! You go Meridith!!
A sewer is way too good for filthy dimon & his crony crew!!!
Bonus Round!
How many Jefferson Counties does it take to make up Greece or Italy?
tick tock
Jubilee Time!
http://www.reuters.com/article/2011/11/09/usa-economy-whitney-idUSN1E7A8...
"Now that the states are under duress, the easiest thing for them to do is cut aid to municipalities ... cutting services, considering privatizing, cutting hours for parks and libraries. This is where it gets personal ... if you have lower social services, the value of your home is less," she told participants in the American Water Summit, which attracts those from water-related global and U.S. concerns.
"This situation ... will be so much more personal than the credit crisis," she added.
This is what happens when a Bank attempts to mine Gold and Silver from a sewage system.
This is a very interesting turn of events. The JeffCo Sewer bond holders agreed to a 33% haircut, it's unlikely that JeffCo gets as favorable treatment in bankruptcy. The Sewer bonds are fully secured by the Sewer Revenue (less operating expenses). I'm not that familiar with Chapter 9 BK's but I've read the security agreement, it's solid.
I think the Sewer assets will be put into a separate entity (the same as the proposed deal now scrapped) and the Sewer note holders keep full face value --- less any recoup from litigation between JeffCo and JP Morgan.
At the same time this quashes the settlement between the bond insurers (Syncora and FGIC I think) and JP Morgan... so that litigation will now continue.
As for as the general obligation bonds... yeah, they are fucked.
From the Washington Post
Jefferson County, Ala., files for biggest municipal bankruptcy in U.S. historyhttp://www.washingtonpost.com/business/jefferson-countys-path-from-scand...
Good thing JP Morgan isn't short Silver - they'd be fucked!
Next we'll see Jamie in Jeff County on the weekends in a county F-150 cleaning out storm sewer grates and pouring chemicals at the wastewater plant.
Protecting shareholder interests.
Oh, there'll be Jamie Dimon sightings at the wastewater treatment plant.
"Zeke! Look at that one there, floating on the top of the settling tank! Isn't that Jamie Dimon?!"
"No. No. There're kernels of corn showing in that one."
"Oh, yeah, you're right."
Everyone keeps saying Meredith Whitney was wrong. I just watched the episode of 60 minutes again and she is 100% correct. She didn't say that these defaults would happen/occur "in the next 12 months" she said "it will become something to worry about in the next 12 months"
The MSM will skew anything to suit their needs.
She was 100% correct !
Here is the interview that sparked it all "listen" @2:40 of the interview. You can't debunk the actual video.
http://www.youtube.com/watch?v=hI-rIGyLri4
It's obvious this is all Meredith Whitney's (de)fault. Time to roll out the government commission into her again.
It's obvious she is wrong and all the MSM are right, and if not then that makes her a criminal - right?.
To fix things maybe Steve Liesman should be President, oh that's right he's a slob - maybe not.
And a big FUCK YOU shout out to Jamie Dimon, you self-rightious prick!
Couldn't happen to a nicer company.
It's Karma (or something like that)....all that Dimon and company have put out is now finally all coming back to them in spades.
Does anyone remember how everyone was hanging on every word of the Jefferson County bankruptcy hearings back in August and September? Well, out of the blue and with no media coverage, they decide today that they will declare the largest municipal bankruptcy in US history. The story shows up briefly on the financial media sites (quickly relegated to an afterthought way down at the bottom of the page), and isn't reported AT ALL on the mainstream media sites. I'm not surprised, but I do find it strange that there was such focus on the issue 2 months ago, and now there's zero coverage. Just strange to me.
Time for a "splash" tax...
my company has debt to JPMorgan....fuck lol
Hail the commission....
FUCK JPMorgan.
"A Credit Event for Christmas" A Hallmark Hall of Fame holiday special presentation.
It's time the Demon and his compatriots on board the JPM get screwed out of shape.
Remember folks not to shake hands with any JPM or Goldman Sachs employees.
While they shake hands with you another employee picks your wallet.
Too late - your money is already gone
Hammer those damn carpetbaggers!
Has anyone figured out a way to short municipal bonds? I have done it in the past with a small regional brokerage that actually held the individually named bonds (CUSIP) in their account but that brokerage merged into Scwhab long ago. I have not had any luck finding a broker to particpate in shorting the more widely traded closed end funds. Anyone have any suggestions for shorting USA muni's? With interest rates at these lows there is very little risk on the market side and with municipal financials the way they are lots of upside on credit risk and interest rate risk, too. Shorting munis seems like an obvious thing to do to me.