The city says seven big banks conspired to inflate rates on VRDO bonds so they could "continue to collect re-marketing fees for doing nothing."
'Connecticut has less flexibility to meet unanticipated revenue shortfalls,' said Standard & Poor's.
Prosecutors say it is the first criminal case to allege accounting fraud against city officials in connection with the sale of municipal bonds.
New Jersey's "posture toward Atlantic City reduces the likelihood that it would rescue other financially distressed cities," the rating agency warns.
AIG Commercial CEO Rob Schimek seeks a bigger bottom line in an era of low investment gains.
The SEC says a Rhode Island agency and its underwriter defrauded investors in a municipal bond offering that financed Curt Schilling's video game company.
A property tax increase helped shore up the city's police and fire fighter pensions, but the Windy City is still cash strapped.
Major U.S. investment banks sold municipal bonds using offering documents that contained materially false statements or omissions, the SEC says.
