Harrisburg, PA Files for Bankruptcy

Pennsylvania’s capital city of Harrisburg has filed for bankruptcy amidst a long-running debt crisis. The Harrisburg city council approved the filing, calling it the lone alternative to selling off city assets to pay Wall Street creditors. Democratic Mayor Linda Thompson has declared the move illegal after refusing to sign the bankruptcy papers. If the filing proceeds, Harrisburg would be the largest municipality to declare bankruptcy since the California town of Vallejo did so in 2008.

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