FINANCIAL TIMES: The two men in charge of are taking a hard line with creditors, waving away the concerns of Wall Street as posturing begins ahead of tough negotiations on a financial restructuring of the Motor City.
In an interview with the Financial Times in New York, Richard Snyder, Michigan governor, and Detroit’s emergency manager Kevyn Orr dismissed claims that the city’s plan to impose steep losses on bondholders could set a dangerous precedent for the municipal bond market.
“These were sophisticated investors,” Mr Snyder said on Friday. “Who didn’t know that Detroit had issues? The premium on Detroit’s debt meant by definition that there was greater risk.”… (more)
EDITOR: Caveat emptor.
