Law and legal issues

Detroit emerged from the largest municipal bankruptcy in the U.S. with stronger credit fundamentals but the city heads into the future facing major economic challenges, Moody's says in a new report.

Illinois' need to protect the public welfare in the face of a fiscal emergency by cutting pension benefits trumps their state constitutional protections, Solicitor General Carolyn Shapiro told the state's high court Wednesday.

An Australian fund manager’s $5.72 billion bid for the 75-year lease of the Indiana Toll Road bodes well for the P3 sector and suggests rising interest among pensions in investing in American infrastructure.

Prime Healthcare backed out of deal to purchase California's ailing Daughters of Charity Health System, a six-hospital chain, because it objected to conditions imposed by California Attorney General Kamala Harris.

Illinois squares off against opponents of its 2013 pension reform legislation Wednesday afternoon before the Illinois Supreme Court in arguments that will be shown live on the Internet.

An Australian company is set to pay $5.7 billion for the 75-year lease of the Indiana Toll Road from the bankrupt company that bought it for $3.8 billion in 2006.

The Missouri Supreme Court took control of Ferguson’s municipal court system Monday in a move that follows a stinging federal report that accused the officials there of abusive practices designed to generate revenue for the court and city coffers.

Florida Gulf Coast University's credit outlook stabilized Monday when two rating agencies found that recent modifications to the terms of a direct bank loan lessened the institution's contingent risk.

Former Maverick County Commissioner Cesar Flores has been sentenced to 10 years in federal prison for his role in a bribery and bid-rigging scheme involving state highway funds. Fourteen others have been convicted.

Members of a banking committee approved a Nebraska bill that would favor bondholders over pensioners in the event of a bankruptcy, sending the measure to the floor of the Legislature.

A bill designed to ease Detroit's first appearance in the public debt market since its bankruptcy sailed through a Michigan legislative committee and could come before the Senate next week.

Ferguson police engaged in unlawful and discriminatory practices partially driven by the city's reliance on court fine revenue to support its budget, according to a stinging report by the federal government prompted by the fatal shooting of Michael Brown.

Standard & Poor's lowered its ratings on Sweet Briar College's bonds to B-minus from BBB due to a recent decision to close the central Virginia woman's college.

Officials from Nebraska’s largest cities urged lawmakers not to put “Goldman Sachs ahead of the common citizen” by advancing a bill that would favor bondholders over pensioners in the event of a bankruptcy.

Former Rhode Island House Speaker Gordon Fox pleads guilty to federal charges of bribery, wire fraud and failure to file tax returns.

A California lawmaker introduced a bill that would add language to school district bonds that would protect investors in the event of bankruptcy.

Hospital credits could be hurt if the Supreme Court strikes down federal health insurance subsidies established by the Affordable Care Act, Moody's Investors Service said Tuesday.

Unions have weighed in with their brief as the Illinois Supreme Court prepares to hear oral arguments March 11 in the state's appeal of a lower court ruling voiding the legislative package that cut benefits for four of the state's five pension funds.

LaSalle County, Texas, is trying to take over operation of a for-profit prison after the private operator quit its contract for the damaged facility.

The demise of Doral Bank in Puerto Rico may lead to a default on more than $34 million in municipal bonds and notes.