Saturday, August 6, 2011

"Postal Service posts $3B loss, warns of default"

"Reporting a $3.1 billion loss for its third quarter,
the U.S. Postal Service today warned that without congressional changes
it would default next month on a $5.5 billion payment to the federal government.

For the nine months that ended June 30,
the Postal Service lost a total of $5.7 billion.

...The default threat has raised the specter of a bailout.

..."Without changes in the law,
the Postal Service will be unable to make the $5.5 billion mandated prepayment
due in September."

The payment is for projected health care costs for future retirees.

Last month, the Postal Service announced it is considering closing 3,700 post offices
and ending Saturday service next year."

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