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

he 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.

EDITORS' PICKS

THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER

Subscribe to the Week