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Copyright 2016 NPR. To see more, visit http://www.npr.org/.

Copyright 2016 NPR. To see more, visit http://www.npr.org/.

Copyright 2016 NPR. To see more, visit http://www.npr.org/.

Copyright 2016 NPR. To see more, visit http://www.npr.org/.

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Michigan Governor Doesn't Want Bailout For Detroit

Jul 21, 2013

Michigan Gov. Rick Snyder says he's not expecting the federal government to offer a bailout for bankrupt Detroit and doesn't think it would be a good idea anyway.

Speaking on CBS' Face the Nation on Sunday, Snyder said of a Washington bailout of the Motor City: "I don't expect one."

Last week, the city of Detroit, facing some $18.5 billion in debt and liabilities, declared bankruptcy under Chapter 9, the federal code that allows municipalities to seek protection from creditors. At the time, Snyder approved the dire move, saying "Only one feasible path offers a way out."

On Sunday, Snyder reiterated his position, saying, "bankruptcy is there to deal with the debt question."

"It's not just about putting more money in a situation," he said. "It's about better services to citizens again. It's about accountable government."

In 1975, New York City faced a similar crisis as Detroit now does. At the time, President Gerald Ford initially rejected New York's appeal, but later signed a bill extended $2.3 billion in loans to the city. In 1978, President Jimmy Carter approved further loans to the city.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.