The Obama White House took Mitt Romney’s advice and decided not to bail out Detroit after its record bankruptcy.
The Detroit News reported:
The White House reiterated Friday that no federal bailout for Detroit is in the works, but said the adminstration wants to be helpful as the Motor City restructures in bankruptcy.
White House spokesman Jay Carney said on the issue of Detroit’s insolvency that is “something local leaders and creditors are going to have resolve, but we will be partners in an effort to assist the city and the state as they move forward.” Asked for specifics on what type of assistance might be available, Carney declined to elaborate.
“The issue here of the insolvency and dealing with that is one that Detroit and Detroit’s creditors will have to resolve. We will be of assistance in general, both in terms of policy as well as just being a partner with Detroit as Detroit finds its way and moves forward in the coming weeks, months and years,” Carney said.
White House officials including Obama senior adviser Valerie Jarrett, Housing and Urban Development Secretary Shaun Donovan and National Economic Council director Gene Sperling have been in talks with city and state leaders. In April, Jarrett made it clear to Detroit Mayor Dave Bing and Emergency Manager Kevyn Orr at a White House meeting that no federal bailout was forthcoming.
