Wednesday, December 3, 2008

Birmingham Bankrupt?

Birmingham Mayor Larry Langford's arrest Monday was sparked by an investigation which could lead to the city's bankruptcy. The city has a $3.2 billion sewer debt, and could move into insolvency. It would be the largest municipal bankruptcy in US history.

Langford was paid over $7 million in questionable transations, according to US Attorney Alice Martin. Martin also stated that profits from the city's sewer bond transactions were given to a company owned by Langford.