Californian city votes to declare bankruptcy
San Bernardino, hit hard by recession, is third city in the state to go bust this year.
Last Modified: 12 Jul 2012 20:53

Investors in the US appear to have shrugged off news that the city of San Bernardino has voted to file for bankruptcy.

The city, 80km east of Los Angeles, had already slashed salaries and cut 20 per cent of its employees.

Faced with a $45m deficit, the city council called an emergency session and filed for bankruptcy.

The blue collar city of construction workers and factory employees was hit hard by the housing collapse and recession, and has become the third city in the state of California to go broke this year.

Al Jazeera's Brian Rooney reports from San Bernardino.


Al Jazeera
Topics in this article
Featured on Al Jazeera
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Nearly half of Canadians have suffered inappropriate advances on the job - and the political arena is no exception.
Women's rights activists are demanding change after Hanna Lalango, 16, was gang-raped on a bus and left for dead.
Buried in Sweden's northern forest, Sorsele has welcomed many unaccompanied kids who help stabilise a town exodus.
A look at the changing face of North Korea, three years after the death of 'Dear Leader'.
While some fear a Muslim backlash after café killings, solidarity instead appears to be the order of the day.
Victims spared by the deadly disease are reporting blindness and other unexpected post-Ebola health issues.