"If the $240.7 billion [CalPERS] is allowed to sue and wins a monetary judgment, '[T]he impact on the city's ability to reorganize would be astronomical,' [said a U.S. Bankruptcy Court Judge, whose] ... initial ruling sides with San Bernardino and its bondholders, which claimed the city can't afford to fund vital public services and also pay past-due obligations to CalPERS. She invited CalPERS and its lawyers to try to change her mind.... The ruling may set a legal precedent at a time when pensions for public employees are straining local governments from California to Rhode Island, according to bankruptcy attorneys that specialize in municipal insolvencies."  MORE >>