As Illinois battles with the country's second-largest state budget deficit--some $13 billion--its treasurer, Dan Rutherford, told CNBC Tuesday that bankruptcy, an idea being floated to close budget gaps, would disrupt the bond market and break trust with vendors who do business with the state.
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Bankruptcy would disrupt market:
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Gorman owes creditors $13 million
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'US cities could face bankruptcy next year'
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Movie Gallery may emerge from bankruptcy
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Investors pull $4.1bn out of bond funds
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Financials point up after debt auctions;
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Arizona bankruptcies bump up in March
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Crist may veto legislative budget cuts
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Treasurer Wayne Swan defends his fourth Budget
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Stade Français may face bankruptcy
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Tribune files for bankruptcy protection
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Senators to examine role of accounting in preventing financial crises
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Crime Stoppers may be bankrupt next year
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AbitibiBowater needs debtor financing
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Birdville superintendent's former district must repay $13.6 million to the state
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Tribune Co. files for bankruptcy protection
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Ind. delegation split over bailout plan