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May 30, 2006, “More Morgan,” This Just In, referenced a commentary by Neil Morgan which recently aired on KPBS radio. I followed the blog’s internet link to a replay of the commentary and was very disappointed to hear Morgan’s support for sending the city into bankruptcy.
Morgan cites investment banker Diann Shipione as if she were an expert in municipal finance (which she is not), saying that the city “is clearly insolvent.” No mention is made by Morgan of the fact that Shipione’s husband, Pat Shea, is an attorney who promoted bankruptcy during his campaign for Mayor and who stands to potentially gain from significant legal work related to a future bankruptcy proceeding. According to many experts, it is highly unlikely that the city could now demonstrate that it is insolvent. Additionally, bankruptcy would seriously harm the city’s financial reputation, would not relieve the city of the already-committed pension obligations, and would cost well over $100 million. In short, Neil, bankruptcy is a bad idea.