Commissioners in Alabama’s Jefferson County approved a deal with creditors, including $100 million in new concessions from JPMorgan Chase & Co., that may allow the county to end its two-year bankruptcy.
U.S. banks led by JPMorgan Chase & Co. and Wells Fargo & Co. have bought a record amount of municipal debt. That demand is now at risk under a Federal Reserve proposal that excludes local bonds from a list of easy- to-sell assets.
Commissioners of Jefferson County, Alabama, will consider new terms in a proposed accord with creditors on exiting bankruptcy, avoiding a collapse that would have let the parties back out of a settlement reached in June.
Steve Schwarzman’s Blackstone Group LP has spent $7.5 billion acquiring 40,000 houses in the past two years to create the largest single-family rental business in the U.S. The private-equity firm is now planning to sell bonds backed by lease payments, the latest step in turning a small business into a mature industry.
JPMorgan Chase & Co., the biggest U.S. bank, is using cheap funding from government-chartered institutions to meet new regulations designed to ensure it won’t need a taxpayer bailout in any future crisis.
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.