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Newspaper
Barnard Bulletin
Location
New York, New York, United States of America
Date
Sep 22, 1975
Page
5
New York faces a 3.3 billion deficit as city and state leaders struggle with funding. Mayors Wagner Lindsay and Beame used inflated revenue estimates and borrowing to cover short term needs. Banks and investors resist more bond sales while federal programs at fault.
The piece warns New York City could default on wages and bond payments, with banks holding 9.2 billion in assets at risk. If default occurs, up to 7.25 billion could be endangered, threatening cash flow and triggering a broader banking panic.
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