FILE - A July 12, 2012 file photo shows City Hall, center rear, looking over Court Street Square, which is closed, in downtown San Bernardino, Calif. It was learned Monday, Oct. 17, 2012 that federal ... more 
FILE - A July 12, 2012 file photo shows City Hall, center rear, looking over Court Street Square, which is closed, in downtown San Bernardino, Calif. It was learned Monday, Oct. 17, 2012 that federal regulators are looking into the finances of the bankrupt city, and the U.S. Securities and Exchange Commission has launched an informal inquiry. City Attorney James Penman says the city will cooperate. The federal housing department and California finance department already are investigating. San Bernardino filed for bankruptcy protection in August after learning that it faced a $46 million budget shortfall. (AP Photo/Reed Saxon, File) less 
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Associated Press | Photo By Reed Saxon, File
Wed, Oct 17, 2012 5:14 PM EDT