Sum: Line of Credit; Repaid + Interest
Background: In 1975, New York City had to borrow two-thirds of its operating budget, $8 billion. President Gerald Ford rejected an appeal for help. The intermediate savior was the city's Teachers' Union, which invested $150 million of its pension funds, plus a refinance of $3 billion in debt.
In December 1975, after city leaders begin addressing the crisis, Ford signed the New York City Seasonal Financing Act, extending the City a line of credit of up to $2.3 billion [approximately $12.82B in 2008 dollars]. The U.S. Treasury earned about $40 million in interest. Later, President Jimmy Carter would sign the New York City Loan Guarantee Act of 1978; again, U.S. Treasury earned interest. (See Too Big To Fail)
Read The Domino Scenario: The Day New York City Defaulted, 2 June 1975 New York magazine
Background: In 1975, New York City had to borrow two-thirds of its operating budget, $8 billion. President Gerald Ford rejected an appeal for help. The intermediate savior was the city's Teachers' Union, which invested $150 million of its pension funds, plus a refinance of $3 billion in debt.
In December 1975, after city leaders begin addressing the crisis, Ford signed the New York City Seasonal Financing Act, extending the City a line of credit of up to $2.3 billion [approximately $12.82B in 2008 dollars]. The U.S. Treasury earned about $40 million in interest. Later, President Jimmy Carter would sign the New York City Loan Guarantee Act of 1978; again, U.S. Treasury earned interest. (See Too Big To Fail)
Read The Domino Scenario: The Day New York City Defaulted, 2 June 1975 New York magazine