Financial Times FT.com

Lehman Brothers

States seek federal aid as market dries up

By Nicole Bullock in New York

Published: October 7 2008 23:50 | Last updated: October 7 2008 23:50

US states and counties are turning to the federal government for aid as the credit crisis takes its toll on the market for public finance.

Jefferson County, Alabama, has joined the states of California and Massachusetts in contacting Treasury officials about the prospect of financial help. It is struggling to avoid what would be the biggest bankruptcy ever for the US’s municipal bond market, where states, counties and other municipalities raise debt financing.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this