Dispenser of Negativity
- May 30, 2007
- Reaction score
- Political Leaning
About 35 deals now are in the pipeline in the U.S., according to research by Royal Bank of Scotland's RBS Global Banking & Markets. Those assets have a market value of about $45 billion—more than ten times the $4 billion or so two years ago, estimates Dana Levenson, head of infrastructure banking at RBS. Hundreds more deals are being considered, analysts say.
The deals illustrate the increasingly tight financial squeeze gripping communities. Many are using asset sales to balance budgets ravaged by declines in tax revenues and unfunded pensions. In recent congressional testimony, billionaire investor Warren Buffett said he worried about how municipalities will pay for public workers' retirement and health benefits and suggested that the federal government may ultimately be compelled to bail out states.
Sad that it had to come to this point for governments to do this but in the long run having private companies manage services that they can run more efficiently will have much better results.
Facing Budget Gaps, Cities Sell Parking, Airports, Zoos, Other Assets - WSJ.com