Mammoth Lakes, a city of 7,000 also filed for bankruptcy two weeks ago. Those of you who snowboard and ski surely visit this city when it snows. It could not afford to pay a $43 million breach of contract judgment in a lawsuit brought by a developer. Not that the city did not want to pay the judgment, it just did not have the money to pay the amount. The city only has a little over $10 million in revenues. I mean the councilors will become homeless and mendicants just so the judgment can get paid. Every dollar collected by the city for the next four and a half years will have to be used to pay the judgment, and which too big to fail bank will take the risk of lending the city $45 million to continue operating? Their CEO, CFO and COO all have MBA and PHD’s from Harvard and Stanford business school so all of them should know that lending to this city is not risky enough. Lending to the city would fail the securitized collateral mortgage test which put all of us in this mess in the first place. Discussion on San Bernardino bankruptcy Part 2 will be released next week.

Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than five thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave Bldg A-1 Suite 1125 Unit 58 Alhambra,CA 91803.