Declining revenue, a drop in employment and large, risky Wall Street deals are the real causes of Detroit's bankruptcy, according to a report by Demos, a liberal public policy organization.
Pension debt gets a bad rap in Detroit, but it isn't the true cause of Detroit's financial problems, said Wallace Turbeville, author of the Demos report.
Turbeville, who is an attorney and a former vice president at Goldman Sachs, said he has "been around insolvencies in cities … as long as they have been filing for bankruptcy. It's about the cash. Municipal insolvencies are always about a cash shortfall and political will."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
