Transit Agencies Facing 'Unprecedented' Financial Crisis

The financial woes of AIG are impacting American public transit agencies for whom it acted as a loan guarantor: now as many as 30 agencies are in technical default on their loans and could face catastrophic losses.

1 minute read

November 2, 2008, 5:00 AM PST

By Michael Dudley


"Two Congressional leaders Wednesday called on the U.S. Treasury and Federal Reserve to open the $700 billion government rescue package to the country's transit agencies, which they said are at risk of losing up to $16 billion.

As many as 30 transit agencies are at risk of default or collapse due to financing deals with certain banks, Rep. James Oberstar, a Minnesota Democrat, and Rep. John Mica, a Florida Republican, wrote to the country's economic leaders.

Calling the situation 'unprecedented,' the two leaders of the House Transportation and Infrastructure Committee said the Treasury should use its new authority to buy distressed securities to 'help the transit agencies resolve this issue.'

'These defaults -- if processed -- could cost some of the nation's largest transit agencies hundreds of millions of dollars, and could threaten their very existence and the financial stability of the state and local governments that fund them,' the Representatives wrote."

Wednesday, October 29, 2008 in Forbes

View form second story inside Southdale Mall in Edina, Minnesota with escalators and model cars parked on downstairs floor.

The Mall Is Dead — Long Live the Mall

The American shopping mall may be closer to its original vision than ever.

March 21, 2024 - Governing

Houston, Texas skyline.

Report: Las Vegas, Houston Top List of Least Affordable Cities

The report assesses the availability of affordable rental units for low-income households.

March 22, 2024 - Urban Edge

White three-story brick single-room occupancy hotel in downtown Los Angeles, California.

‘Micro-Apartment’ Trend Underscores Housing Crisis

SROs are making a comeback under a new name as the housing supply remains strained and costs soar.

March 22, 2024 - Associated Press via Yahoo News

Aerial view of mountain town of Steamboat Springs, Colorado in the winter with snow at dusk.

Colorado Town Fills Workforce Housing Need With ‘Dorm-Style’ Housing

Median rent in Steamboat Springs is $4,000 per month.

6 minutes ago - CBS News

Red public transit bus in Bangalore, India.

Indian States Give Women Free Bus Passes

The programs are part of an initiative aimed at helping more women join the workforce and improving access to basic needs.

1 hour ago - Next City

Downtown Minneapolis, Minnesota skylinw with stone arched brige in foreground.

Study: How to Revitalize Downtown Minneapolis

A proposal calls for a reevaluation of the city’s skyways, a focus on street-facing businesses, and an improved public realm.

2 hours ago - Minneapolis Post

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.