Karen's Feed
Apr 4, 2012

Can’t let deficit fears stop investments: Geithner

CHICAGO (Reuters) – Americans can’t let fear of deficits stop necessary government spending, U.S. Treasury Secretary Timothy Geithner said on Wednesday as he laid out the administration’s economic agenda ahead of November’s presidential election campaign.

Geithner, one day after President Barack Obama had assailed Republican budget plans as social Darwinism, sharply criticized Republicans who claim the administration’s spending is excessive.

Apr 4, 2012

Geithner: Can’t let deficit fears stop investments

CHICAGO (Reuters) – Americans can’t let fear of deficits stop necessary government spending, U.S. Treasury Secretary Timothy Geithner said on Wednesday as he laid out the administration’s economic agenda ahead of November’s presidential election campaign.

Geithner, one day after President Barack Obama had assailed Republican budget plans as social Darwinism, sharply criticized Republicans who claim the administration’s spending is excessive.

Mar 21, 2012

U.S. muni defaults another blow for insurers

By Karen Pierog

(Reuters) – A growing number of U.S. cities are choosing to fund essential services like public safety and garbage collection over making payments on their outstanding debt, as rising costs and falling revenue deplete their budgets.

So far, the bond defaults are not roiling the $3.7 trillion municipal market because insurance companies are stepping in to make payments to bond holders in some cases. But defaults on insured bonds are putting pressure on these insurers, which never fully recovered from the last decade’s financial crisis.

Mar 20, 2012

Analysis: U.S. muni defaults another blow for insurers

By Karen Pierog

(Reuters) – A growing number of U.S. cities are choosing to fund essential services like public safety and garbage collection over making payments on their outstanding debt, as rising costs and falling revenue deplete their budgets.

So far, the bond defaults are not roiling the $3.7 trillion municipal market because insurance companies are stepping in to make payments to bond holders in some cases. But defaults on insured bonds are putting pressure on these insurers, which never fully recovered from the last decade’s financial crisis.

Mar 20, 2012

Muni defaults another blow for insurers

By Karen Pierog

(Reuters) – A growing number of American cities are choosing to fund essential services like public safety and garbage collection over making payments on their outstanding debt, as rising costs and falling revenue deplete their budgets.

So far, the bond defaults are not roiling the $3.7 trillion municipal market because insurance companies are stepping in to make payments to bond holders in some cases. But defaults on insured bonds are putting pressure on these insurers, which never fully recovered from the last decade’s financial crisis.

Mar 13, 2012

Michigan governor, Detroit mayor clash on fiscal fix

DETROIT (Reuters) – Plodding progress in dealing with Detroit’s crisis led Michigan Governor Rick Snyder on Tuesday to push for a consent agreement to save the city from a state takeover – an effort so far rejected by the city’s mayor.

The Republican governor said he made the move because a workable plan from city officials was not forthcoming.

Mar 13, 2012

Detroit council cold to state proposal on finances

DETROIT (Reuters) – Governor Rick Snyder continued his push for a consent agreement to save Detroit from the financial abyss, presenting city officials and a state-appointed review board with a draft on Tuesday.

The document would keep the mayor and city council in power but create a nine-member financial advisory board that would have considerable oversight of Detroit’s finances, including approval of its budget and debt structures.

Feb 22, 2012

Pension, Medicaid changes sought in Illinois budget

SPRINGFIELD, Illinois (Reuters) – Illinois Governor Pat Quinn will call for cuts to escalating pension and Medicaid costs in his budget address on Wednesday to stop the two programs From devouring more of the cash-strapped state’s general funds budget, top officials in his office said on Tuesday.

The state’s fiscal 2013 pension payment will hit nearly $5.25 billion or 15 percent of projected revenue. That is more than three times the $1.7 billion the state budgeted in fiscal 2008, when pensions accounted for only 6 percent of revenue.

Feb 10, 2012

Jefferson County, Ala. bonds off watchlist-S&P

Feb 10 (Reuters) – Jefferson County, Alabama, avoided
a downgrade of its already low-rated sewer system debt after
principal and interest payments due Feb. 1 were made, Standard &
Poor’s Ratings Services said on Friday.

S&P affirmed the debt’s C rating with a negative outlook,
removed it from CreditWatch with negative implications and
warned the rating could still fall to D if a debt service
payment is missed. D is the rating agency’s lowest speculative
grade rating, signifying default.

Feb 7, 2012

Ohio governor keeps Turnpike funding options alive

Feb 7 (Reuters) – Ohio Governor John Kasich said
on Tuesday he is still looking to the Ohio Turnpike
for a way to raise money to fund highway projects without giving
up control of the toll road.

“I have not made a decision yet on what I want to do with
this turnpike,” the Republican governor said in his state of the
state address.