Bankruptcy on the table for Alabama County: Governor | Reuters

Bankruptcy is still a "very strong possibility" for Alabama's Jefferson County, Governor Robert Bentley said on Saturday -- a move that could make for the largest municipal bankruptcy in U.S. history.

A $3.2 billion bond debt related to Jefferson County's sewer system has pushed the county toward the brink, and a rare Chapter 9 municipal bankruptcy could have ripple effects in the $2.9 trillion U.S. municipal bond market.

If I recall correctly the amount of debt for the sewer system generally got out of hand through some creative accounting the county did along with some Wall Street banks