BRADENTON, Fla. - Alabama's pension chief advised Jefferson County commissioners Friday to authorize their attorney to prepare to file for Chapter 9 municipal bankruptcy and use the threat of an actual filing to force the county's creditors into "serious negotiations" to resolve a sewer-debt crisis on terms more favorable for taxpayers.

David Bronner said in prepared remarks that if creditors won't settle to the satisfaction of the county, it should "allow those money-train folks who abused you to meet their maker in Chapter 9" - referring to Wall Street firms that helped the county sell $3.2 billion of debt, most of which is in troubled variable- and auction-rate securities covered by swaps that are under water.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.