Pensioners vote “yes” to cuts, bond holders prepare to fight
Detroit pensioners voted to accept the pension cuts and allow the Detroit Institute of Arts to become an independent institution. In response, bond insurers who could lose billions in Detroit’s bankruptcy are preparing to fight.
Detroit Free Press columnist Nancy Kaffer joined us today on Stateside to talk about what this means for Detroit.
Police and fire pensioners voted 82% in favor. General retirement pensioners voted 73% in favor.
Two big bond insurers, Syncora and Financial Guaranty Insurance Company are promising to fight this agreement.
Kaffer said the city is offering 0-10% on the $1.4 billion that they are owed. The bankruptcy trial begins August 14 before Judge Steven Rhodes. You can read more about the pensioners' vote here.
*Listen to the full interview with Nancy Kaffer above.