Biden: Feds Might Bail Out Detroit

Biden: Feds Might Bail Out Detroit

Vice President Joe Biden said on Friday that the White House might bail out Detroit. He said White House officials held a meeting on Thursday to discuss the matter after Detroit became the largest city in U.S. history to file for bankruptcy.

“Can we help Detroit?” Biden said. “We don’t know at this point.”

A day after Detroit filed for bankruptcy, a circuit court judge on Friday ordered the filing to be withdrawn, arguing it violated a part of Michigan’s constitution that protects union pensions. The judge also said she would send a copy of her ruling to President Barack Obama, whom she said the filing dishonored.

She also predicted Obama would have a role in Detroit’s ultimate fate. Michigan’s attorney general is appealing the ruling and has asked that the process be expedited. 

Obama had said he would refuse “to let Detroit go bankrupt” on the campaign trial in 2012.

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