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Stockton, Calif. becomes largest bankrupt U.S. city
 

The city of Stockton, Calif., is filing for bankruptcy protection after talks with creditors ended in failure. On Tuesday night, Stockton's City Council voted to stop payments on bonds, enacted a hand-to-mouth budget, and slashed the health and retirement benefits of city workers, and the city manager is expected to formally file bankruptcy papers immediately. Stockton, a city of about 300,000, borrowed heavily during the real estate boom; now it's the nation's largest city to seek municipal bankruptcy.

 

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