Tags: Detroit | bailout | Obama

Senior Obama Official: Politics Nixed Detroit Bailout

Tuesday, 11 Feb 2014 01:47 PM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
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:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Coburn Tells '60 Minutes': I'm Glad We Elected Obama

Thursday, 18 Dec 2014 18:04 PM

Retiring Sen. Tom Coburn, an Oklahoma Republican, said he is glad Barack Obama was elected president during an interview . . .

Report: Hillary Aide Has Skull Session With Warren Supporters

Thursday, 18 Dec 2014 16:52 PM

An adviser to Hillary Clinton reportedly reached out to a group associated with Sen. Elizabeth Warren, who many in the l . . .

Liz Cheney: Obama Foreign Policy a 'Fantasy World'

Thursday, 18 Dec 2014 14:44 PM

President Barack Obama ignores the facts and lives in a "fantasy world" when enacting foreign policy, evidenced by the p . . .

Most Commented

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