Tags: Detroit | bailout | Obama

Senior Obama Official: Politics Nixed Detroit Bailout

Tuesday, 11 Feb 2014 01:47 PM

A federal bailout of Detroit was ruled out by the White House because it was not politically plausible, The Detroit News reports.

"We did not feel we had any available financial tools, and secondly, we did not think that the prospect of legislation was even close to viable," Gene Sperling, director of the White House National Economic Council, said at a breakfast hosted by the Christian Science Monitor.

"To have floated [a bailout] would have given false hope and taken people's eye off the important task ahead, so what we tried to do was make clear that the federal government — we did not have tools at our disposal that could be helpful to Detroit."

Detroit filed for bankruptcy in July — with a whopping $18.5 billion in debt and obligations.

While a bailout was nixed, in September the White House announced nearly $300 million in grants from the federal government and private foundations.

Related Stories:

© 2015 Newsmax. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved