Michigan expected to announce takeover of Detroit finances, lack of heat

BIV

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Apr 22, 2002
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Michigan expected to announce takeover of Detroit finances
By Steve Neavling | Reuters – 3 hrs ago

DETROIT (Reuters) - Michigan Governor Rick Snyder is expected to announce on Thursday an emergency state takeover of Detroit, putting a lawyer with extensive experience managing corporate bankruptcies in charge of the destitute city's finances.

The dramatic move will culminate the long decline of the once thriving center of the U.S. auto industry and birthplace of the Motown trend in popular music.

Republican Snyder is "highly likely" to name an emergency financial manager for Detroit at a news conference scheduled for 2 p.m. local time on Thursday, a source with direct knowledge of the decision said.

The top candidate for the job is Kevyn Orr, 54, a partner in the Washington, D.C., law firm Jones Day, who has long experience handling corporate bankruptcy and restructuring cases, said another source with direct knowledge of the choice.

Orr is best known for his work on the restructuring of Michigan-based Chrysler, which filed for bankruptcy in 2009, earning $1 million in fees during the first year of the case.

He has other Michigan ties, having received both graduate and law degrees from the University of Michigan. And he is African-American, which some politicians have said could help him deal with community leaders in a city that is 83 percent black.

Orr did not return calls and emails requesting comment. Snyder also declined to comment.

The emergency manager will face the huge and controversial task of repairing the finances of a city in crisis. Detroit has run operating deficits for nearly a decade, is starved of cash and facing a crushing burden of debt from commitments such as pensions and health insurance.

Detroit is the poorest major city in the United States with more than a third of the population officially classified as living in poverty, and it has an unemployment rate of 18.2 percent compared with a national rate of 7.7 percent, according to government figures.

Basic services such as street lights and police protection have broken down, and the city has suffered from mismanagement and political corruption.

Detroit's mayor for seven years until 2008, Kwame Kilpatrick, was convicted this week of two dozen federal charges of corruption and bribery for a scheme to collect kickbacks on city contracts for himself and associates. He could face up to 20 years in prison on some of the charges.

Detroit city leaders have long opposed a state takeover, saying that they were making progress on improving the financial situation. Mayor Dave Bing, a former professional basketball player and steel executive, last week announced that it was futile to resist a state takeover, and he would try to work with the emergency manager.

But a defiant city council has called on residents to fight the move, saying that the state is usurping the right of Detroit residents to elect their own leaders.

"We fought for everything we have. How do you stand on the sidelines," Councilman Kwame Kenyatta said on Wednesday in a fiery speech on civil rights at a council meeting.

The city could challenge the takeover in state court but such attempts have failed in Michigan in the past.

Under Michigan state law, the financial manager will have broad powers to run the city, supplanting the elected city council and mayor. The manager could ultimately recommend that Detroit file the largest municipal bankruptcy in U.S. history.

The manager will be able to renegotiate labor contracts, privatize services and sell certain city assets. A law passed in December 2012 that takes effect on March 28 will boost those powers, allowing the manager to terminate collective bargaining agreements with the city's 48 unions.

(Reporting by Steve Neavling; Additional reporting by Dawson Bell in Lansing, Michigan, and Karen Pierog in Chicago.; Writing by Greg McCune; Editing by Lisa Shumaker)
http://news.yahoo.com/michigan-expe...1lBHB0A3NlY3Rpb25zBHRlc3QDVGVzdF9BRkM-;_ylv=3

Is this a scoop? I'm going to feel extra special today if this is a scoop.
 

Neckbeard

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No heat? How the fuck are dey sposed tah keep peace? It's all on the emergency caretaker's mind...

 

Norm Stansfield

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But a defiant city council has called on residents to fight the move, saying that the state is usurping the right of Detroit residents to elect their own leaders.
I'm with this guy. Build a tall fence, let them sort it out amongst themselves. It would be good practice for when California goes.
 

Motor Head

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#6
I remember a video of the city council bitching that Obama hadn't bailed them out despite them delivering the vote to for his re-election. Light dawns upon forehead - before the election you're a useful idiot and after the election your just an idiot.

Plenty more of this coming before the U-Haul pulls up to the Whitehouse to take the greatest grifter in the history of the world back to Chicago.
 
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Arbitrarily did a Google Street View of downtown... all I see are empty store fronts or in this case a Bail Bondsman... and no people either.
 

d0uche_n0zzle

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The Google vehicles never made it back. Stripped clean and on cider blocks in the heart of the big D.
 

Neckbeard

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Look, sorry to be the racist (not really) but isn't the heart and soul of DA D's problem 20 years of incompetent black rule?

So why would this guy...



Kevyn "Wit a Y" Orr

Be the choice? Because the governor doesn't want to piss people off in Detroit?
 

d0uche_n0zzle

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#11
Clearly, the majority of Colored Peoples, in America, are only good at one thing. STEALING.
 

Norm Stansfield

私は亀が好きだ。
Mar 17, 2009
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#12
Look, sorry to be the racist (not really) but isn't the heart and soul of DA D's problem 20 years of incompetent black rule?

So why would this guy...



Kevyn "Wit a Y" Orr

Be the choice? Because the governor doesn't want to piss people off in Detroit?
Because that looks like the kind of black guy black people would never elect to public office. And he didn't pick the spelling of his name, his mother did.

Hey, mills, you're needed. A black person is the victim of racism over here. Put on your cape and armour, I'll saddle the horse.
 

Joker1919

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Oct 11, 2008
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#13
Can Michigan burn Detroit down and collect the insurance money?

Sent from my Kindle Fire using Tapatalk 2
 

DanaReevesLungs

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#15
And once Mr. Orr has Detroit back in the black, or as close to it as possible, the state of Michigan will hand Detroit back over to the same idiots the ill-informed populace of Detroit elected in the first place to horribly mismanage the city's affairs once again, because rather than being brutally honest and calling this what it is, everyone has to make everyone else feel like it's OK that this once thriving city is now a fucking shell of its former self. (holy run-on sentence Batman!)

Shit like this will never change because white people can't offend black people. And black people will continue to elect those that corrupt in every way possible and only think of their constituents when it actually benefits them.
 

d0uche_n0zzle

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#16
The worst part are the ten to fifteen percent of the 'workers' who actually work and keep things rolling that end up getting majorly fucked over in the deal.
 

Ballbuster1

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#18
"We fought for everything we have. How do you stand on the sidelines," Councilman Kwame Kenyatta said on Wednesday in a fiery speech on civil rights at a council meeting.
Someone worried he might lose his job and bennies?
 

BIV

I'm Biv Dick Black, the Over Poster.
Apr 22, 2002
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#19
Councilman Kwame Kenyatta
I know nothing about this dude but his name, yet I can see where the city's problems lie.
 

Hudson

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#20
Sooo hoping for these guys to step in:

Who didn't see that coming?
And I blame the Jews.
 

Creasy Bear

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#21
"We fought for everything we have." Councilman Kwame Kenyatta said on Wednesday in a fiery speech on civil rights at a council meeting.
Yeah... and what you have is flat broke, fucked up shit heap of a city. Maybe it's time you stopped fighting and just BEHAVE!