A U.S. government default caused by Congress failing to raise the $16.7 trillion federal debt limit could have catastrophic consequences that might last decades, the Treasury Department said in a report today.
NewStar Financial Inc., the business lender backed by private-equity firms Corsair Capital LLC and Capital Z Partners Management LLC, is exploring a sale, according to people with knowledge of the matter.
The Internal Revenue Service ruled that bonds sold by a Florida community-development district that issued $426 million of debt aren’t tax-exempt, a decision with potential implications for hundreds of similar entities.
A housing development for retirees in Chicago with about $229 million of long-term debt became the largest municipal bond default this year when it missed a Sept. 1 payment after occupancy failed to meet expectations.
Municipal borrowers defaulted at three times the typical rate even as the pace fell from records the past two years when Jefferson County, Alabama, and Lehman Brothers Holding Inc.’s failure sustained historic levels.