On Thursday, the emergency manager, Kevyn Orr, issued the preliminary results of a three-month investigation that identified diversions of shared money into individual accounts, real estate investments that lost millions of dollars and “disconcerting administrative protocols” for handling health care and other benefits.
A federal bankruptcy judge ruled Monday that the city of Stockton, Calif., was eligible for court protection from its creditors, clearing the way for a battle over whether public workers’ pensions can be cut when the city they work for goes bankrupt.
The Justice Department late Monday filed civil fraud charges against the nation’s largest credit-ratings agency, Standard & Poor’s, accusing the firm of inflating the ratings of mortgage investments and setting them up for a crash when the financial crisis struck.
Economic damages inflicted by Hurricane Sandy could reach $50 billion, according to new estimates that are more than double a previous forecast. Some economists warned Thursday that the storm could shave a half percentage point off the nation’s economic growth in the current quarter.
States and companies have started investing very differently when it comes to the billions of dollars they are safeguarding for workers’ retirement.
Decisions that the government will make soon on the future of General Motors and Chrysler could accelerate the decline of traditional pension plans, which have sheltered generations of workers from an impoverished old age.
The federal government faced mounting pressure on Monday to put billions more in some of America’s biggest banks, two of the biggest automakers and the biggest insurance company, despite the billions it has already committed to rescuing these ailing industries.
The Social Security system is choking on paperwork and spending millions of dollars a year screening dubious applications for disability benefits, according to lawsuits filed by whistle-blowers.
Federal Reserve officials were in urgent talks with Goldman Sachs and JPMorgan Chase on Monday to put together a $75 billion lending facility to stave off a crisis at the American International Group, the latest financial services company to be pummeled by the turmoil in the housing and credit markets.