Jefferson County, Alabama
By 2011, Jefferson County could no longer borrow more money and its total revenues fell because of the bad economy. So, the county went to Wall Street and asked them to forgive $1 billion of the debt.  After months of talking, the county and the banks were $130 million apart from a final agreement. The banks wanted the county to raise sewer rates to cover the missing money.  The county wanted the banks to forgive more debt.