The Postal Service reported Friday it lost $3.1 billion in the third quarter of the fiscal year. With no end to the financial bleeding in sight, postal officials said they would default on payments to the federal government due next month.
"Our ongoing financial situation has reached the point of becoming a real, now cash crisis," said Lou Giuliano, the chairman of the Board of Governors at Friday's board meeting. "As things stand today, the Postal Service will not have adequate cash to meet all of our financial obligations by the end of the fiscal year, Sept. 30."