Wednesday, December 12, 2012

Let the war begin

LOS ANGELES, Dec 11 (Reuters) - Wall Street bondholders have thrown down the gauntlet to America's biggest public pension fund, demanding similar rights as creditors in bankrupt San Bernardino, California - and they say they could take the fight all the way to the U.S. Supreme Court. A group of bondholders and bond insurers on Monday filed a 114-page objection to arguments by the California Public Employees' Retirement System (Calpers) that it should enjoy its historical primacy as a municipal bankruptcy creditor. Reuters
San Bernardino is just the warm up, the real battle is LA and its bankruptcy next year.

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