many observers are wondering if Illinois could become the first US state to declare bankruptcy (link). Advertisements
…but has no plan in place on how to engage with Congress to make that happen (link).
A court ruling ordering the state of Illinois to find the money to paid Medicaid providers hit bond interest rates and ratings as the state struggles to pay its debts (link).
Spain’s largest lender, Santander, stepped in to assume the assets of Banco Popular after a run on the bank’s deposits (link).
Moody’s Investors Service cut its rating on China’s debt. There are concerns that the nation’s leadership will be able to rein in leverage while maintaining the pace of economic growth (link).
In an effort to cut the state budget without layoffs Connecticut Governor Dannel Malloy proposed a wage freeze along with a decrease in state contributions for healthcare and some other benefits. Due to budget issues the state’s credit rating was recently downgraded (link).
Despite passing more public spending cutbacks that lead to national demonstrations and riots, Greek efforts to secure another round of bailout funding to avoid bankruptcy has failed. There is still a possibility of securing the funds in June. Should they not be able to the nation will likely declare bankruptcy in July (link).