Wednesday, July 24, 2013

Breaking: Judge overrules objections to Detroit bankruptcy « The Greenroom

Breaking: Judge overrules objections to Detroit bankruptcy « The Greenroom: "The PEUs had wanted to stop the bankruptcy under the state constitution, which requires municipalities to guarantee pension obligations. Municipal bankruptcies, however, are within federal jurisdiction since the Depression.  This means that Detroit can force unions to negotiate on pension terms in a bankruptcy proceeding — still a politically dangerous task, but one that will be necessary to unwind the massive debt load of the city."

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