- by James Spiotto With the end of the flurry of Congressional activity over impeachment, followed by a general yearning for the end to partisan conflicts, we now look to this year and what issues can be addressed before the national election. There remain lingering...
Municipal Bankruptcy
The First Circuit Court of Appeals Ruling on ‘Assured’ Should be Reheard or Reversed; Recent Ruling Sends a Harsh Message to Municipal Bond Market
( ) Why the Municipal Bond Market Expects Pledged Special Revenues to be Timely Paid to Bondholders in a Chapter 9 Proceeding. And, Why the First Circuit's Assured Ruling in Puerto Rico’s PROMESA Title III Proceeding Should Be Reheard or Reconsidered on Appeal....
PUERTO RICO’S REPUDIATION OF GENERAL OBLIGATION BONDS
PUERTO RICO’S REPUDIATION OF GENERAL OBLIGATION BONDS: A REAL RISK OR JUST KABUKI THEATER By James E. Spiotto On January 14, 2019, the Financial Oversight and Management Board, acting through its Special Claims Committee and the Official Committee of Unsecured...
A WAKE-UP CALL FOR OTHERS – THE LESSONS LEARNED AND TO BE REMEMBERED FROM PUERTO RICO’S DISTRESS AND PROMESA
By James E. Spiotto The Treaty of Paris ending the Spanish-American War of 1898 resulted in control of Cuba, Puerto Rico, Guam and The Philippine Islands being given to the United States. Cuba in 1902 and The Philippines in 1946 were given independence. Puerto Rico...
Risk Perception of State and Local Government Debt May Stress Taxes and Leverage Without a Certainty of Payment – Use of Statutory Liens, Special Revenues and Other Means of Assurance
By James E. Spiotto Fiscal distress of or perception of risk of nonpayment by government begets higher cost of borrowing and even loss of access to the market The perception of fiscal distress leads to higher interest rates (cost of borrowing) in the global markets:...
Spiotto on the Benefits of Economic Development and Stimulus from Needed Infrastructure Improvements to Deal with Tax Policies, Issues, Leverage Problems, Financial Distress and Unfunded Pension Obligations
We cannot avoid economic cycles but history of financial stability points the way In the U.S.A., financial challenges and difficulties in balancing a government budget are not so much caused by the desire to spend more than tax revenues currently generate but rather...
Chapter 9 Municipal Bankruptcy Statistics: Use by Number, Type and Year
Historically, the use of Chapter 9 bankruptcy by a municipality is still rare, and a last resort. MuniNet Guide's update on historical and current municipal bankruptcy statistics We are providing an update on our 2015 piece on municipal bankruptcy statistics. One of...
Embracing Shared Risk and Chapter 9 to Create Sustainable Public Pensions
Unsustainable and Unaffordable Public Pensions Cannot be Solved by Raising Taxes or the Passage of Time, but There are Some Practical Solutions W. Gordon Hamlin, Jr.; Mary Pat Campbell; Andrew M. Silton; and James E. Spiotto To date, no American state or local...
Beyond Hurricane Maria: Federal Action in Puerto Rico with PROMESA
Understanding Current Structures and Potential Changes to Federal Action in Puerto Rico Requires Analysis of the Enactment of PROMESA and its Provisions In a continuing series on the recovery of Puerto Rico after Hurricane Maria, James Spiotto looks at the...
The Vote is in for Chicago Growth at Conference on Fiscal Future
Experts and Business Leaders Believe Engines of City's Fiscal Ship Powerful Enough to Steam Ahead, Despite Headwinds The Civic Federation and the Federal Reserve Bank of Chicago hosted an event, 'Chicago’s Fiscal Future: Growth or Insolvency?' on Wednesday at...