"Stockton, Calif., can stay in bankruptcy protection after a judge said he found that the biggest U.S. city in bankruptcy negotiated in good faith with its creditors, and that the creditors didn't.... Negotiation is a 'two-way street,' said U.S. Bankruptcy Judge Christopher M. Klein in Sacramento, addressing creditors who he said didn't negotiate in good faith. 'You cannot negotiate with a stone wall.' ... The city never held talks with [CalPERS, which] refused to negotiate with Stockton, claiming that under state law it isn't authorized to reduce the city's contributions to the fund. Mr. Klein said Monday that Stockton didn't have an obligation to negotiate with CalPERS."  MORE >>