The stakes are raised as Calpers moves to sue San Bernardino over the bankrupt city's decision...

|By:, SA News Editor

The stakes are raised as Calpers moves to sue San Bernardino over the bankrupt city's decision to halt its bi-weekly payments to the fund. The precedent-setting case will have major implications for the way bondholders and insurers are treated in a municipal bankruptcy. If Calpers loses - good for creditors. If Calpers win - not so good. It's hard to imagine this not making its way to the Supreme Court.