The Los Angeles MTA is almost definitely screwed, and Muni and BART could be next. Over the last 20 years, all three made AIG-related deals wherein the transit authorities sold their equipments and facilities to investors and then leased them back. It's a common practice, or was before AIG went down the tubes. If those deals go sour, "the potential is pretty horrendous across the industry" according to a transit trade group. And when money gets cut, the first thing to go? Service, of course. [LA Times]
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