http://www.latimes.com/news/local/la-me-stockton-bankruptcy-20120627,0,2285815.story Stockton to file for bankruptcy, will be largest U.S. city to fail - latimes.com STOCKTON — This Gold Rush-era port city, an epicenter of California's agricultural exports, will become the nation's largest city to seek protection under the U.S. bankruptcy code after its City Council on Tuesday stopped bond payments, slashed employee health and retirement benefits and adopted a day-to-day survival budget. City Manager Bob Deis likened the process to cutting off an arm to save the body. He is expected to file bankruptcy papers immediately. A Delta wind had scrubbed the Central Valley sky blue as residents gathered hours early for the 5:30 p.m. meeting. Mostknew what the night held; bankruptcy has been a long time coming. Stockton has been in negotiations with its creditors since late March under AB 506, a new California law requiring mediation before a municipality can file for reorganization of … [Read more...]