Tuesday's Headlines: Restructuring executives sought by troubled municipalities

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Michigan is giving 400 financial professionals and public employees a crash course in advising troubled municipalities, building an army of emergency managers that may become a model for other U.S. states, according to BusinessWeek.

But private sector restructuring advisories should carefully consider before launching into this sector. According to the article, Michigan's new approach is among state experiments attracting the attention of restructuring executives as corporate work dissipates in the improving economy and governments may pay $150 an hour compared with the $250 to $500 rate received by mid-size firms for corporate work and as much as $1,000 for larger advisory companies.</P

Other news:

JPMorgan plans to nearly double the number of its employees in Brazil to 1,200 in the next few years. [Reuters]

AIG will sell its rail services to Perella Weinberg Partners for $600 million, as part of a plan to repay its government bailout. [DealBook]

Citi moved to cushion the impact of regulation by putting up for sale a $12.7 billion portfolio of bad assets, as the bank's 1Q profits fell by a third. [Financial Times]

In a surprising reversal, Deutsche's deal to sell its BHF-Bank division to LGT Bank of Lichtenstein has fallen apart. [Dealbook]

Credit Suisse is adding six executives to its Brazilian investment-banking team of 30 people this year. [Bloomberg]

Three investment funds are suing 12 U.S., European and Japanese banks that allegedly conspired to suppress the Libor. [Financial Times]