According to the investmentnews.com “Jefferson County, Alabama, declared the largest municipal bankruptcy in U.S. history, capping a more than three-year saga that turned it into one of the biggest casualties of Wall Street’s credit crisis.”
The decision for the county to declare bankruptcy was made after lawmakers at the state level declined their support for an agreement that had been struck with JPMorgan Chase & Co, who is one of the main creditors. The deal had the backing of the Governor, but he and other supporters were unable to get enough support for the agreement to make it happen.
The move towards bankruptcy is not good news for creditors like JPMorgan as they are “facing hundreds of millions of dollars in losses and may revive concern that defaults may rise in the $2.9 trillion municipal bond market.”
Institutional and individual investors may have invested in municipal bonds tied to Jefferson County and thus may be deeply impacted by the county’s bankruptcy. If you invested in a municipal bond that is tied to Jefferson County, Alabama and have suffered losses you may be able to recover your losses through a FINRA arbitration claim against the financial professional or brokerage firm that sold you the Investment.
To speak to a securities attorney about your ability to recover Jefferson County municipal bond investment losses please call our Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website http://www.whitesecuritieslaw.com.