Detroit set to sue Banks UBS AG, Bank of America over 2005 'Debt Swap' deal

[LovingA2andMI]

"Following requests by Detroit Employees Unions and workers to challenge terms of a 2005 City Debt Swap deal, the City of Detroit filed a lawsuit Friday aimed at wiping out a massive debt from former Mayor Kwame Kilpatrick administration.

As first revealed by January 23 report in the Michigan Citizen, ex-mayor, in 2005 former City Chief Investment Officer Sean Werdlow and city banks established illegal structure per Michigan's Municipal Finance Law Act 34, resulting in Detroit owning $1.4 billion in debt to Corporate Financial Institutions of UBS AG and Bank of America.

The debt resulted in Michigan Governor Rick Snyder mandating Detroit's Elected Officials last year accept appointed Emergency Manager Kevyn Orr in March 2013 controlling all of the City's finance and municipal affairs, under controversial state law P.A. 436 of 2012."

Read more: http://www.reachoutjobsearch.com/2014/02/breaking-detroit-set-to-sue-banks-ubs.html#ixzz2s3XZeSol

[Demeter]

1. About time, Kevin

You bastard.

Picking on retirees, when the banksters were the cause of the problem.

[LovingA2andMI]

4. Exactly!!!

Don't know what took Kevyn so long --- except his bosses wanted to give the banks a FREE Deal off the backs of Detroit retirees, citizens and workers.

[JDPriestly]

2. This will be interesting. Detroit may not be the only city suckered into such a deal.

We are thankful to Jerry Brown and the voters who supported his referendum to raise taxes for getting California out of the mess we were in.

[LovingA2andMI]

5. Totally Agree

The case in San Jose, CA is interesting also. Feel free to read about it here:

"A contentious battle in San Jose over city employee pension reform was raised a notch Monday when a judge ruled that cutting city workers pensions to save the city money is illegal. This could be a set-back for other cities across California facing similar budget-breaking obligations for current and future retirees.

This decision is a major blow for Mayor Chuck Reed. For the last couple of years Reed has been really tough on employee groups trying to reign in pension costs, which have created a $230 million budget crises.

At first employees were told to take a pay cut, then they were told they had to pay into the pension plan."

Read More: http://abclocal.go.com/kgo/story?id=9370593

[Enthusiast]

3. Kicked and recommended a whole bunch.....nt

[LovingA2andMI]

6. Thank you!

Much appreciated!