▲
1
0
▼

Detroit Chapter 9 Bankrucpty


               
2013 Dec 8, 10:41pm   19,633 views  110 comments

by spydah_hh   follow (1)  

Not sure if this was already posted, I did a search in the forums and nothing came up. But hey like I've stated before, it was only a matter of time before pensions were cut. I wouldn't be surprised if other cities follow suit.

A federal judge declared Tuesday that Detroit is eligible for bankruptcy protection, giving a green light to the nation's largest municipal bankruptcy filing in history.

The contentious dispute pits the city's finance officials against its unions, creditors and retirees, ahead of what are expected to be steep cuts in pensions, as well as fire sales of treasured assets.

"The city no longer has the resources to provide its residents with basic police, fire and emergency services that its residents need," Judge Steven Rhodes said in a ruling that was over 140 pages long.

Carlos Osorio | AP
Detroit city workers and supporters protest outside the federal courthouse in Detroit while awaiting the bankruptcy decision, Tuesday, Dec. 3, 2013.
In the meantime, Detroit's emergency financial manager, Kevyn Orr, is expected to proceed toward the city's next major step: submitting a plan to restructure Detroit's approximately $18 billion in debt.

(Read more: Illinois to vote on pension proposal)
Immediately after the ruling, Detroit's largest public workers union, the American Federation of State, County and Municipal Employees, said it will appeal.

"We're very disappointed. It's a very sad day for the people of Detroit and we've already filed a notice of appeal," AFSCME attorney Sharon Levine told CNBC. "We think that if there had been more time and actual good faith in negotiations, that there could have been potentially a solution that could have avoided this bankruptcy case and been less scary and devastating for the citizens of Detroit."

The judge's decision listed the city's long litany of financial woes, including the loss of manufacturing jobs and population in recent decades.

"As of April 2013, about 48 percent of the city's street lights were not working," Rhodes said. "In 2012 the average police response time was 30 minutes. In 2013, 58 minutes, and the national average is 11 minutes."
There were a number of quirks in the judge's ruling. Among other things, Rhodes said that the city did not negotiate in "good faith" with the unions to whom Detroit owes money—normally a prerequisite for allowing bankruptcy.

At the same time, he noted the obstinacy of the unions in the negotiations saying that the city could not realistically negotiate with a "stone wall.

http://www.cnbc.com/id/101242616

« First        Comments 102 - 110 of 110        Search these comments

102   tatupu70   @   2013 Dec 20, 5:58am  

FortWayne says

or the unions who spent the money...

FW--are you purposely ignoring the facts now?

103   zzyzzx   @   2014 Jan 7, 1:11am  

http://finance.yahoo.com/news/detroit-manager-freezes-pension-fund-212148029.html

Detroit manager freezes pension fund, creates 401k-type plan

Jan 6 (Reuters) - Detroit Emergency Manager Kevyn Orr has frozen the pension fund for some of the city's workers, replacing it with a 401k-type plan, according to an executive order obtained by Reuters on Monday.

The pension freeze, which took effect on Dec. 31, only affects Detroit's General Retirement System, which covers non-public safety workers. The action closes the pension fund to any new or rehired employees and freezes benefit accruals for current workers. It also stops worker contributions to the pension and annuity savings funds and ends cost-of-living adjustments for pension payments made to retirees.

As of Jan. 1, the order created a defined contribution plan for affected workers.

Orr issued the order on Dec. 30, but it was not posted on a web page listing his other orders since taking over Michigan's biggest city in March.

Detroit's pension systems, made up of the general retirement and police and fire funds, are a major factor in the more than $18 billion in debt and other obligations that led to the city's historic municipal bankruptcy filing on July 18.

104   FortWayne   @   2014 Jan 7, 5:48am  

bgamall4 says

I wonder if Oakland just walked away from the swaps like they were contemplating. That is what Cali cities need to do. The banksters knew there would be no rise in interest rates, because Bernanke had their backs. What a scam.

Bankers knew, and unions didn't care since it's the taxpayers paying the bill. Kind of synonymous to two wolves tearing up the taxpayer sheep.

105   spydah_hh   @   2014 Jan 7, 9:25am  

zzyzzx says

Detroit manager freezes pension fund, creates 401k-type plan

Jan 6 (Reuters) - Detroit Emergency Manager Kevyn Orr has frozen the pension fund for some of the city's workers, replacing it with a 401k-type plan, according to an executive order obtained by Reuters on Monday.

So the pension scam was replaced by the 401k scam? At least the government won't be on the hook for this fiasco.

106   Y   @   2014 Jan 7, 12:33pm  

this is a great precedent for the emerging roadmap to municipal solvency all over the US.
Next on the chopping block, teachers pensions. Based on the US world position in grade average, our current batch of edukators should be delegated to running fairground vapid art shows into their 90's...

zzyzzx says

http://finance.yahoo.com/news/detroit-manager-freezes-pension-fund-212148029.html

Detroit manager freezes pension fund, creates 401k-type plan

107   tatupu70   @   2014 Jan 7, 10:16pm  

SoftShell says

Based on the US world position in grade average, our current batch of edukators should be delegated to running fairground vapid art shows into their 90's...

Replacing the c with a k is pure genius.

108   zzyzzx   @   2014 Jan 7, 10:36pm  

bgamall4 says

I think swaps deals from banksters' hell are a bigger problem. The pensions are not outrageous.

Please provide link to such. IIRC that was the case in a county in Alabama, but Detroit, not so much.

109   FortWayne   @   2014 Jan 8, 12:04am  

bgamall4 says

Unions and most normal people had no clue

They didn't care. Years of delusional spending and entitlement addiction. I bet it was like in CA, unions constantly want more and more since someone else is paying the bill through taxation. They never care how it gets paid, as long as they can beat up politicians to give them more.

They deserved it. Sadly I think CA is next.

110   indigenous   @   2014 Jan 15, 12:40pm  

FortWayne says

They deserved it. Sadly I think CA is next.

Hmm no comment from Marcus...

« First        Comments 102 - 110 of 110        Search these comments

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   users   suggestions   gaiste