NYC Shows Puerto Rico How to Stay Alive If U.S. Says ‘Drop Dead’

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Big M.A.C. (Municipal Assistance Corporation) Chairman Felix Rohatyn, from left, Governor Hugh Carey and New York City Mayor Abe Beame. Photographer: Bill Stahl Jr./NY Daily News Archive via Getty Images

On May 2, 1975, the heads of New York’s three largest banks told Governor Hugh Carey they would no longer buy New York City’s debt. With that, the world’s financial capital was pushed to the brink of default.

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