| Judge Disses CalPERS Lawsuit Hoping to Stop San Bernardino Bankruptcy; City Eligible "as a matter of law based on incontrovertible facts" Posted: 30 Aug 2013 02:45 PM PDT In a common sense ruling sure to have union advocates howling, a Federal judge says San Bernardino, California eligible for bankruptcy Judge Meredith Jury of the U.S. Bankruptcy Court for the Central District of California, said the city of 210,000, located 60 miles east of Los Angeles, was eligible for bankruptcy protection "as a matter of law based on incontrovertible facts."
The tentative ruling came despite objections by the California Public Employees' Retirement System, or Calpers. The $260 billion pension fund is the city's biggest creditor.
San Bernardino filed for bankruptcy protection one year ago.
If the jury affirms the ruling, it would clear the way for the city to negotiate with its creditors and produce a final bankruptcy plan on which the judge will ultimately have to rule.
The ruling also sets up a high-stakes battle between Calpers and other creditors, including Wall Street bondholders and insurers, over how they will be treated in the bankruptcy.
The preliminary ruling follows a similar judgment for the city of Stockton, California, which was found eligible for bankruptcy protection in April.
"I don't think anyone in this courtroom seriously thought the city was anything but insolvent," Jury said. A city must be insolvent and have proof to have negotiated in good faith with creditors to be eligible for Chapter 9 municipal bankruptcy.
Calpers argues that it should not be treated like other creditors and must be paid in full because of California state law. Bondholders argue that federal bankruptcy law trumps state statutes and say Calpers should be forced to fight with other creditors over how much they are paid under an exit plan.
The judge said the one creditor who wanted her to dismiss the bankruptcy was Calpers. But she said: "If Calpers gets all the money they want, under what they say is their statutory right, who isn't going to get paid? All the employees? How is that going to help Calpers?" If CalPERS gets stiffed and it should (and so should bondholders dumb enough to buy San Bernardino bonds), it will pave the way for cities across the nation to finally get out from under the unfair burden of preposterous union wage and benefit agreements. This was a welcome ruling. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
| Freedom Fries are Out - French Fries and French Toast Back In Posted: 30 Aug 2013 10:29 AM PDT UK Will Not Join War Against Syria Yesterday UK Prime Minister David Cameron Lost House of Commons Vote on Syria. Western efforts to co-ordinate action against the Assad regime in Syria over charges of chemical attacks against civilians were dealt a blow on Thursday night when UK prime minister David Cameron lost a vote in the House of Commons on the issue.
After the vote Mr Cameron said: "It's clear to me that the British parliament and the British people do not wish to see military action; I get that, and I will act accordingly."
Mr Cameron had already had to backtrack on his initial plan to secure parliamentary approval for intervention on Thursday in the face of widespread opposition. Financial Times Warmongers Pounced Quickly Today, the Financial Times warmongers and interventionists whined The Syria vote brings to an end decades of delusion This week's events will have an impact. They will strengthen a rising US perception that Britain is an ally pulling back from the world. Mr Cameron's decision to call a referendum on EU membership fits this picture. Why would Britain weaken itself further by disengaging from Europe?
There lies the danger. It is one thing for Britain to confront reality. In its own way, the US has been doing the same by rationing its interventions in the Middle East. But, even as a diminished power, Britain still has something worthwhile to offer in helping to sustain global order.
There were good arguments for, as well as against, acting to deter Mr Assad's regime from using chemical weapons. For all the cuts, Britain still has a sizeable military, a first-rate diplomatic service and a permanent seat on the UN Security Council. To leave behind the delusions that were the legacy of empire should not be to pull up the drawbridge against a dangerous world. France Stands Firm France 24 News reports France stands firm on Syria despite shock UK vote France has not changed its position on a possible military intervention in Syria, President François Hollande said on Friday, following a vote in Britain's parliament against the motion.
Hollande told French daily Le Monde in an interview that he supported taking "firm" punitive action in response to a Syrian chemical weapon attack he said had caused "irreparable" harm, adding that he would work closely with France's allies to punish Syrian President Bashar al-Assad's regime. Mercy! Freedom Fries are Out. The White House will again serve French Fries and French Toast. Related Stories - Tired of Perpetual War? What Can You Do About It?
- War of "Non-Intervention"
- Is Obama Another Bush Clone? Another Nixon Clone?
Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
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