Friday, October 31, 2008

Daily Business Review: News Item

Daily Business Review: News Item: "A surge in municipal bond defaults has combined with problems among bond insurers and the bankruptcy of investment banking giant Lehman Brothers to make public sector finance more cumbersome.

Municipal bond defaults across the nation jumped from January through September to $2.44 billion from $324 million for all of last year, said Richard Lehmann, president of Miami Lakes-based Income Securities Advisor.

Lehmann said the widespread credit crunch could expose weaknesses on municipal balance sheets including “horrendous unfunded pension liabilities that states and municipalities have incurred over that last 10, 20 years that they don’t have the means to pay.”"

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