Wall Street Settlements Bring N.Y. Record Surplus: Muni Credit
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New York state is poised for a record surplus fed by legal settlements with Wall Street banks, creating a buffer against a $1.3 billion Medicaid bill from the U.S. government.
The state, which has its highest credit rating in four decades, won $3.6 billion in a June deal with BNP Paribas SA after the French bank admitted to evading U.S. sanctions against Sudan, Cuba and Iran. It’s the biggest chunk of a $4.2 billion windfall that New York is counting on as a budget cushion after closing more than $12 billion in deficits since Governor Andrew Cuomo took office in 2011.