Governor says he won’t ask for federal bailout

AFP-JIJI

Michigan’s governor said Sunday he would not seek a U.S. government bailout for Detroit, saying bankruptcy was a necessary path to rebuild the once great American auto city.

“And I don’t expect one. I’ve said before that the state cannot bail out the city of Detroit,” Rick Snyder said on CBS’ “Face the Nation” talk show. “It’s not just about putting more money in a situation.”

The city filed for bankruptcy Thursday, saddled with debt worth $18 billion and a depleted tax base.

Steven Rattner, the former investment banker who led the restructuring of GM and Chrysler, this week called on the federal government to step in with financial assistance.

Vice President Joe Biden said the White House did not know what it could do.

“I think it’s very difficult right now to ask directly for support,” Detroit Mayor Dave Bing said Sunday on ABC’s “This Week.”