
"In 1975, New York City ran out of money. For a decade it had managed to pay for its hundreds of thousands of city employees and robust social services by taking on billions of dollars in debt. But eventually investors were no longer willing to lend the city any more money. New York teetered on the edge of bankruptcy the city shuttered more than a dozen firehouses, teachers went on strike and garbage piled up in the streets."
"But President Gerald Ford was adamantly opposed to bailing out NYC, prompting the famous New York Daily News headline "Ford to City: Drop Dead." On today's show, the story of a group of private citizens who were deputized by the state of New York to try to save the city's finances. Led by investment banker Felix Rohatyn, the group had to put together a grand bargain that everyone would be willing to agree to,"
In 1975 New York City exhausted its ability to borrow after years of funding payrolls and social services with debt. The city faced near-bankruptcy: firehouses closed, teachers struck, and garbage accumulated. Rescuing the city required cooperation from the state, banks, unions, large property owners, and the White House. President Gerald Ford opposed a direct federal bailout, provoking public outrage. The state deputized private citizens led by investment banker Felix Rohatyn to assemble a grand bargain that balanced concessions and secured the billions of dollars needed to keep the city solvent.
Read at www.npr.org
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