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August 2nd, 2012
12:10 PM ET

U.S. Postal Service defaults on $5.5 billion

CNN's Erin Burnett tackles the impending deadline for the United States Postal Service to avoid default.

Postal Service could run out of cash in October

Without help from Congress, the Postal Service will not only default on payments for retiree health care benefits, but it could lack cash for operations by mid-October.

As of midnight Wednesday, the Postal Service was in default - for the first time in its history - on a $5.5 billion payment owed the federal government to prepay health care benefits for retirees.

While the Postal Service is in big financial trouble due to fewer people sending mail and the mandate to prepay retiree benefits, the default is largely symbolic. The agency will skip that payment and another $5.6 billion payment due Sept. 30, while continuing to pay employees and contractors to deliver the mail on time.

FULL POST


Filed under: Economy • News • The Number
soundoff (2 Responses)
  1. Kevin A. Lewis

    Oh, and by the way, Anderson Cooper's site is still blocking any and all comments to all stories (all posted comments are "awaiting moderation") Is this a tech glitch or is he that afraid of public feedback?

    August 2, 2012 at 2:46 pm | Reply
  2. Kevin A. Lewis

    Thanks for this informative piece.

    August 2, 2012 at 2:44 pm | Reply

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