PROFILE
FROM Susan Eggman
Stockton Files for Bankruptcy: Who's Next? Earlier this week, we heard that the City of Stockton was into mediation with creditors and public unions, but no agreement was reached in time to avoid bankruptcy. Last night, the City Council adopted what it called " a survival budget ," making Stockton the largest American city to seek protection from creditors and unions in US bankruptcy court.
Stockton Weighs Bankruptcy Stockton is an hour east of the San Francisco Bay Area, a city of almost 300,000 people and a port on the San Joaquin River. During the housing boom, the population increased, and that led to investments in public projects. But the housing collapse brought Stockton the second highest foreclosure rate in the country. If negotiations with creditors don't produce a settlement by tomorrow, it could become America's largest city to declare bankruptcy .
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