Dimon Says Localities May Use Bankruptcy to Cut Costs
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Jamie Dimon, chief executive officer of JPMorgan Chase & Co., said some U.S. municipalities may use bankruptcy courts to renegotiate pensions and labor contracts as debt overwhelms them.
The comments echoed ones he made Jan. 12 at the New York-based bank’s annual health-care conference in San Francisco. Dimon urged caution when investing in the $2.86 trillion market for state and local debt, though he said he doesn’t expect bankruptcies to sideline the economic recovery.