White House promises to support Detroit as it goes through bankruptcy

{mosads}But White House press secretary Jay Carney added that Detroit city officials would have to take point on the matter of insolvency.

“I think it’s been made clear by local leaders and state leaders that the broader issue is one that has to be resolved by the city and its creditors,” Carney said. “We will of course, as we would with any city in this country, work with that city and have policy discussions with leaders in the city and make suggestions and offer assistance where we can.”

Carney’s comments come a day after Michigan Gov. Rick Snyder (R) and the state-appointed emergency manager for the city of Detroit, Kevyn Orr, filed for Chapter 9 bankruptcy. Detroit is the biggest city to file for bankruptcy in United States history.

On Friday, a judge in Ingham County, Michigan, said the bankruptcy filing violated Michigan’s constitution, according to the Detroit Free Press. The judge, Rosemarie Aquilina, said that the filing had to be withdrawn, and that Orr should not take any additional new actions concerning Detroit’s bankruptcy. Aquilina argued the state’s constitution stops officials from taking steps that reduce pensions of public employees, and Snyder and Orr violated that rule by filing for bankruptcy. Under bankruptcy, pension benefits will be cut, Aquilina said.

“I have some very serious concerns because there was this rush to bankruptcy court that didn’t have to occur and shouldn’t have occurred,” Aquilina said according to the Detroit newspaper. “Plaintiffs shouldn’t have been blindsided.”