
For years now, we've had our fingers crossed for the City of Birmingham and Jefferson County -- 'Bama's most populous area.
CORRUPT MAYOR
We hoped that once Larry Langford, Birmingham's former mayor(pictured below, climbing out of a sewer), was convicted and put away in federal prison for 15 years, the county and city could begin to recover.
After sinking into crippling debt from an upgrade of its sewer system, Jefferson Co. has been been struggling to avoid bankruptcy since 2008; however, recent discussions on a debt restructure broke down. Another element in the decision to file bankruptcy seems to have been the Alabama Legislature's inability to reach a consensus on any way to help the county resolve its financial problems.

$4.1 BILLION BANKRUPTCY FILING
Sadly, yesterday, Jefferson Co. declared that it would default and seek Chapter 9 protection from creditors in a $4.1 billion filing. This is the largest municipal bankruptcy filing in U.S. history.
The biggest loss in the filing will be faced by J.P. Morgan Chase & Co., the investment bank which arranged most of the financing to revamp the county's sewer system.
POLLUTED WATER/SEWER RENOVATIONS
In 1996, a federal judge ordered the sewer renovations after area waterways were found to be polluted. But, taxes that were going to be used to fund the enormous project were later declared illegal, reports Market Watch.
Although municipal bankruptcies are rare, there have been 11 so far in 2011, including Harrisburg, Pennsylvania's state capital, and Central Falls, Rhode Island's smallest city.
Not surprisingly, bond investors are nervous.
BELOW, READ MORE ABOUT BIRMINGHAM'S TROUBLES:
by Sharon McEachern

CLICK AND READ "Birmingham Mayor Arrested: Langford Joined Jailed Mayors Club"
CLICK AND READ "Birmingham Exposed to Unconscionable Degree of Risk: Sues JP Morgan Chase"
CLICK AND READ "Birmingham Mayor Langford Convicted on 60 Counts of Bribery, Money Laundering"
CLICK AND READ "Bama's Birmingham Votes to Replace Ousted Mayor: It's 4 mayors in 4 months"
CLICK AND READ "Out of the Sewers Into Federal Prison: Birmingham's Langford Gets 15 Years"