Redesigned $100 bill to enter circulation in October, feds say

Published April 25, 2013

Associated Press

WASHINGTON –  The Federal Reserve announced Wednesday that it will begin circulating a redesigned $100 bill this fall, more than two years after its initial target.

The Fed has set a new target date of Oct. 8. The redesigned note incorporates added security features, such as a blue, 3-D security ribbon and a disappearing Liberty Bell in an inkwell. The features are designed to thwart counterfeiters.

The revamped bill had been expected to go into circulation in February 2011. But in December 2010, officials announced an indefinite delay. They said they needed more time to fix production issues that left unwanted creases in many of the notes.

"We made numerous process changes to address the creasing issue and we are back in full production," said Dawn Haley, a spokeswoman for the Bureau of Engraving and Printing.

Haley said those changes included modifying the paper feeder on the printing presses to accommodate variations in the paper associated with the 3-D security ribbon. The blue security ribbon is composed of thousands of tiny lenses. Those lenses magnify the objects underneath them to make them appear to be moving in the opposite direction from the way the bill is being moved.

Benjamin Franklin portrait will remain on the $100 bill, the highest value denomination in general circulation. It is also the most frequent target of counterfeiters.

The $100 bill is the last note to undergo an extensive redesign aimed at thwarting counterfeiters with ever-more sophisticated copying machines. The redesigns began in 2003 when the government added splashes of color to the $20 bill. That makeover was followed by redesigns for the $50, $10 and $5 bills. The $1 bill isn't getting a makeover.

An extensive public education effort is planned for businesses and consumers around the world to raise awareness about the new design and provide information on how to use the new security features. Fed officials said information about the redesigned $100 can be found at www.newmoney.gov.

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Judge allows California city to enter bankruptcy, largest municipality to go bust

• 

Stockton, Calif., became the most populous city in the nation to go broke Monday, after a judge accepted the city's application to enter bankruptcy. 

In the closely watched decision, U.S. Bankruptcy Judge Christopher Klein said the bankruptcy declaration was needed to allow the city to continue to provide basic services. He determined Stockton would not be able to perform "its obligations to its citizens on fundamental public safety as well as other basic government services without" the protections provided under bankruptcy proceedings. 

Stockton was facing a $26 million shortfall when it filed for bankruptcy last summer, the result of the housing bust and soaring pension obligations. After cutting a quarter of their police force and other city services to the bone, officials argued bankruptcy was their only option. 

The city of nearly 300,000 people has become emblematic of government excess and the financial calamity that resulted when the housing bubble burst. 

Its salaries, benefits and borrowing were based on anticipated long-term developer fees and increasing property tax revenue. But those were lost in a flurry of foreclosures beginning in the mid-2000s and a 70 percent decline in the city's tax base. 

The city's creditors wanted to keep Stockton out of bankruptcy -- a status that would likely allow the city to avoid repaying its debts in full. 

They argued the city had not cut spending enough or sought a tax increase that would have allowed it to avoid bankruptcy. 

Matthew Walsh, an attorney for the bond holders, declined to comment after Monday's ruling. 

Attorneys for the city said the city's budget and services had been cut to the bone. 

"There's nothing to celebrate about bankruptcy," said Bob Deis, Stockton's city manager. "But it is a vindication of what we've been saying for nine months." 

The Chapter 9 bankruptcy case is being closely watched nationally for potential precedent-setting implications. 

The $900 million that Stockton owes to the California Public Employees' Retirement System to cover pension promises is its biggest debt. So far Stockton has kept up with pension payments while it has reneged on other debts, maintaining that it needs a strong pension plan to retain its pared-down workforce. 

The creditors who challenged Stockton's bankruptcy petition are the bond insurers who guaranteed $165 million in loans the city secured in 2007 to pay its contributions to the CalPERS pension fund. That debt got out of hand as property tax values plummeted during the recession, and money to pay the pension obligation fell short. 

Legal observers expect the creditors to aggressively challenge Stockton's repayment plan in the next phase of the process. 

By 2009 Stockton had accumulated nearly $1 billion in debt on civic improvements, money owed to pay pension contributions, and the most generous health care benefit in the state -- coverage for life for all retirees plus a dependent, no matter how long they had worked for the city. 

The Associated Press contributed to this report.

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Judge allows California city to enter bankruptcy, largest municipality to go bust

• 

Stockton, Calif., became the most populous city in the nation to go broke Monday, after a judge accepted the city's application to enter bankruptcy. 

In the closely watched decision, U.S. Bankruptcy Judge Christopher Klein said the bankruptcy declaration was needed to allow the city to continue to provide basic services. He determined Stockton would not be able to perform "its obligations to its citizens on fundamental public safety as well as other basic government services without" the protections provided under bankruptcy proceedings. 

Stockton was facing a $26 million shortfall when it filed for bankruptcy last summer, the result of the housing bust and soaring pension obligations. After cutting a quarter of their police force and other city services to the bone, officials argued bankruptcy was their only option. 

The city of nearly 300,000 people has become emblematic of government excess and the financial calamity that resulted when the housing bubble burst. 

Its salaries, benefits and borrowing were based on anticipated long-term developer fees and increasing property tax revenue. But those were lost in a flurry of foreclosures beginning in the mid-2000s and a 70 percent decline in the city's tax base. 

The city's creditors wanted to keep Stockton out of bankruptcy -- a status that would likely allow the city to avoid repaying its debts in full. 

They argued the city had not cut spending enough or sought a tax increase that would have allowed it to avoid bankruptcy. 

Matthew Walsh, an attorney for the bond holders, declined to comment after Monday's ruling. 

Attorneys for the city said the city's budget and services had been cut to the bone. 

"There's nothing to celebrate about bankruptcy," said Bob Deis, Stockton's city manager. "But it is a vindication of what we've been saying for nine months." 

The Chapter 9 bankruptcy case is being closely watched nationally for potential precedent-setting implications. 

The $900 million that Stockton owes to the California Public Employees' Retirement System to cover pension promises is its biggest debt. So far Stockton has kept up with pension payments while it has reneged on other debts, maintaining that it needs a strong pension plan to retain its pared-down workforce. 

The creditors who challenged Stockton's bankruptcy petition are the bond insurers who guaranteed $165 million in loans the city secured in 2007 to pay its contributions to the CalPERS pension fund. That debt got out of hand as property tax values plummeted during the recession, and money to pay the pension obligation fell short. 

Legal observers expect the creditors to aggressively challenge Stockton's repayment plan in the next phase of the process. 

By 2009 Stockton had accumulated nearly $1 billion in debt on civic improvements, money owed to pay pension contributions, and the most generous health care benefit in the state -- coverage for life for all retirees plus a dependent, no matter how long they had worked for the city. 

The Associated Press contributed to this report.

View the original article here