• President Obama On Detroit Bankruptcy

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    Washington— The White House said President Obama is closely monitoring Detroit’s financial situation after the city announced it had filed for bankruptcy and urged the city and creditors to find a solution.

    “The president and members of the president’s senior team continue to closely monitor the situation in Detroit. While leaders on the ground in Michigan and the city’s creditors understand that they must find a solution to Detroit’s serious financial challenge, we remain committed to continuing our strong partnership with Detroit as it works to recover and revitalize and maintain its status as one of America’s great cities,” White House spokesman Keith Maley said.

    Related: Detroit Files For Chapter 9 Bankruptcy

    Last week, the White House offered no help to the City of Detroit to avoid a potential bankruptcy filing as officials have made clear that no federal bailout is coming.

    Detroit Emergency Manager Kevyn Orr and Detroit Mayor Dave Bing met with White House officials including Obama’s senior adviser Valerie Jarrett in early April to discuss Detroit’s financial situation. Last week, Orr updated Jarrett and other White House officials by phone about the city’s woes.

    “They wanted an update about what’s going on in Detroit,” he said of this week’s call.

    Last week, Orr spokesman Bill Nowling said at the April White House meeting “there was never a formal ask, but I think the way it was portrayed to me that it was pretty clear there was going to be no bailout …akin to what we saw in scope and intent for the autos or for Wall Street.”

    Sen. Carl Levin, D-Detroit, said he was saddened by the news of the Chapter 9 bankruptcy filing.

    “Detroit is more than a part of the state I represent in Washington. It is my lifelong home. And so today’s news that the city has filed for bankruptcy protection saddens me, however necessary it may have been. But what stands out about Detroit through the centuries is its grit and resilience. I know firsthand, because I live in Detroit, that our city is on the rebound in some key ways, and I know deep in my heart that the people of Detroit will face this latest challenge with the same determination that we have always shown,” Levin said.

    Rep. Candice Miller, R-Harrison Township, said Detroit had no other options.

    “Detroit has been kicking the can of their fiscal problems down the road for decades and has been hurt desperately by fiscal mismanagement and public corruption. It is now clear that the city has come to the end of the road making the bankruptcy filing the only path forward. I applaud the Governor for his courage to appoint the Emergency Financial Manager and Kevyn Orr for his steadfast efforts to find equitable settlements with the City’s creditors. If the work Kevyn Orr did in helping Chrysler through bankruptcy is any guide, then the citizens of Detroit can expect that a stronger Detroit will come out on the other side,” she said.

    Sen. Debbie Stabenow, D-Lansing, said Detroit would emerge stronger. “This is certainly one of the greatest challenges Detroit has faced in its long history, but the people of Michigan’s largest city have met and overcome tremendous challenges in the past. There are so many positive things happening across the city, and I have every confidence that Detroit will emerge even stronger and more resilient,” she said.

    Rep. Gary Peters, D-Bloomfield Township, said this isn’t a sign of defeat for Detroit.

    “I am deeply saddened by the news that the City of Detroit has filed for bankruptcy today. This is a difficult moment in the history of our state and our nation, but by no means is this a sign of defeat or the only story Detroit has to tell. Detroit built America’s middle class, and even in the midst of this crisis, new businesses, new technology, and new sources of innovation and inspiration can be found throughout the city. The strength, resiliency, and resolve of Detroiters will help ensure that the city bounces back stronger than ever,” Peters said.

    Originally seen on The Detroit News

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