Financial Control Board, New York State
In the late 1960s and early 1970s, the City of New York began to face serious financial strain due to a number of factors including increased demand upon social programs, job loss, middle-class flight to the suburbs, and over-reliance on short-term bonds. In 1975, the strain became a crisis when the Urban Development Corporation defaulted on some of its bonds, and the City's own bonds and financing came under closer scrutiny.
