Tag Archives: Washington Post

Time for a transit bailout

It appears that the financial crisis is affecting transit agencies directly. From a Washington Post article (via: The Bellows):

[DC] Metro and 30 other transit agencies* across the country may have to pay billions of dollars to large banks as years-old financing deals unravel, potentially hurting service for millions of bus and train riders, transit officials said yesterday.

The problems are an unexpected consequence of the credit crisis, triggered indirectly by the collapse of American International Group, the insurance giant that U.S. taxpayers recently rescued from bankruptcy, officials said.

AIG had guaranteed deals between transit agencies and banks …

Posted by BusChick at | Comments Off
Category: issues | Tagged , ,