Tag Archives: Detroit

Detroit EM tries to sell bailout to lawmakers


Stack of Money
Governor Rick Snyder says he thinks there’s progress in negotiations with the Legislature to put 350 million dollars of state money toward Detroit’s bankruptcy settlement. Detroit’s emergency manager just spent two days in Lansing in an effort to build support for the deal.

That money from the state would help fund pensions and ensure the assets of the Detroit Institute of Arts don’t get put up or auction.

The governor says now he’s pushing for lawmakers to vote on a bailout package in May or early June.

“The goal is to get it done before there’s a recess for the summer.”

Snyder says the bargain has to include an end to legal challenges to the bankruptcy. He would also like an oversight panel to help manage the city’s finances post-bankruptcy. He says that should also help reassure reluctant legislators.

Warren Buffett in Michigan: Praises Detroit, announces investment in local businesses

Buffett1126-fotoWarren Buffett was in Michigan Tuesday to help launch a program that will invest $20 million in small businesses in and around Detroit.

Buffett is an advisor to Goldman Sachs’ 10,000 Small Businesses initiative, which is committing $15 million of capital to support small businesses in and around the city. Another $5 million will go to business training for Detroit entrepreneurs.

Despite Detroit’s historic bankruptcy filing, Buffett says the city has a “huge potential” for economic growth.

“You may need a reorganization plan,” said Buffett. “Exactly what it should be, I’m not an expert on that. But I do know that the resources in terms of the people, the businesses, the history, the culture are all here to have a great city in the future.”

“The United States with a flourishing Detroit is going to be a lot better United States than without one,” he said.

The announcement at Ford Field was a who’s who of business leaders and Michigan politicians. Buffett was joined by Governor Rick Snyder, Detroit Emergency Manager Kevyn Orr, members of Michigan’s congressional delegation, White House officials, and many more.

Goldman Sachs CEO Lloyd Blankfein said the company would not invest in Detroit if it didn’t believe the city will make a comeback.

“It wasn’t a great city. It was the greatest industrial city in the country – probably the world,” said Blankfein. “And so, I would not bet against it, I’d bet for it, and that’s what we’re doing here.”

Businesses interested in the 10,000 Small Businesses program have until January 6th to apply.

Click here too view information on the 10,000 Small Businesses initiative http://10ksbdetroit.com/

Snyder to testify in Detroit bankruptcy hearing

Michigan Gov. Rick Snyder

Michigan Gov. Rick Snyder

Gov. Rick Snyder will take the stand this afternoon as part of a hearing on Detroit’s bankruptcy filing. Attorneys for city employee unions intend to question the governor about the decision to allow the bankruptcy

Snyder was also questioned earlier this month as part of a deposition. The governor agreed to waive his executive privilege to testify.
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