Michigan Gov. Snyder vetoes bailout for Detroit

July 27, 2013 at 12:49 PM
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DETROIT, July 27 (UPI) -- Michigan Gov. Rick Snyder said he will not ask for a federal bailout for the Detroit, which recently filed for bankruptcy protection.

"The state nor the federal government should just simply write checks to take care of liabilities. I haven't asked and I don't intend to ask," said Snyder in an interview, The Wall Street Journal reported Saturday.

Snyder said there would be no change in the city's emergency strategy of considering general obligation bondholders as unsecured creditors, the Journal said.

In the same interview, the emergency financial manager assigned to Detroit, Kevyn Orr, said general obligation bondholders were aware a the start that their investment was a risk.

"My job, the contract I signed, the covenant I have with the state and the governor ... doesn't say put the city on sustainable footing while taking into consideration the impact this might have on the broader general-obligation market. No, it's just: Put the city on sustainable footing," Orr said.

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