Detroit’s Message to Investors

 

Photo by Gerald R. Ford School of Public Policy, University of Michigan

 

When emergency financial manager Kevyn Orr filed his plans in late February to lift Detroit out of bankruptcy, his proposals drew fire from the municipal-finance industry. Investors, bond insurers, ratings analysts, and industry groups all balked at his terms. That’s not surprising, since Orr, a private-sector restructuring expert, has used the Detroit bankruptcy to try to overturn years’ worth of precedent in municipal finance.

Read more: http://www.city-journal.org/2014/24_2_snd-detroit-bankruptcy.html