Wells Fargo Seizes Stockton, California City Hall – Is this the beginning of the end for municipalities in or on the edge of bankruptcy
Thursday, May 31, 2012
Wells Fargo Seizes Stockton, California City Hall
The Stockton City Council announced Wednesday that they will look at bankruptcy contingency plans after Wells Fargo seized the new city hall building.
The city paid $35 million to buy the 8-story building, but was not able to move in because of its money problems, and recently stopped making debt payments all together. This is the fourth building that was repossessed by Wells Fargo; the bank seized three city parking garages for the same reason.
Just wait to financial problems start to put a squeeze on state governments. California and Illinois are high up on the list. They might be able to scrape by for another year or two, but that’s it.