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Tuesday, December 3, 2013

FFT 12/3: Michigan Governor Rick Snyder 'Day of Reckoning' Focus: Detroit's Pending Bankruptcy Decision

Photo Credit - The Daily Beast
Governor Rick Snyder efforts to drive Detroit into Bankruptcy
Court will face a Day of Reckoning on Tuesday, December 3.

By Monica RW - Head Writer
Independent Underground News & Talk 

"December 3 in Detroit will be a day set to make history. U.S. Federal Court Bankruptcy Judge Steven Rhodes forthcoming decision on Michigan's largest municipally declaration of complete insolvency, could result in harming thousands. Destroying financial futures of the City current retirees and future pensioners for decades to come."
Today's Food for Thought. Was Detroit's bankruptcy really necessary?

No, if the expert asked this important question was City native son, former Mayoral candidate and head of Michigan's State Board of Accountancy, and owner of the largest African-American head accounting firm C.P.A. Tom Barrow. 

March of 2013, Barrow was the first financial expert to openly question the legitimacy of Michigan Governor Rick Snyder's mission to place Detroit into receivership.

Less than two weeks after winning election as Governor of Michigan, on November 18, 2010 Chief-Executive-Elect Snyder talked with Bloomberg News about the possibly of Detroit's future Bankruptcy, during his first term.

"Michigan Governor-elect Rick Snyder said a Detroit suburb’s effort to enter bankruptcy is an “early indicator” of the depth of financial trouble faced by hundreds of communities in the state. 
There are “wealthy communities that are not in that different a position” from Hamtramck, said Snyder, a Republican who is a former computer-company executive. 
“They simply haven’t had the day of reckoning arrive yet that is liable to happen in the next two or three years, with the way property tax revenues are going,” Snyder said yesterday in an interview at the Republican Governors Association meeting in San Diego. The most challenging period is probably about 2013 to ’15,” Snyder said. “Literally, there could be hundreds of jurisdictions.”
If Governor Snyder was foreshadowing his ultimate plans to bring a day a reckoning to Detroit during 2013 is unknown. Verifiable is in 2012, Snyder set the stage of what could occur by Judge Rhodes signature on legalized documentation the City is bankrupt and completely unable to pay any bills due. Up to and including millions in revenue owed for defined pension benefits to thousands of Detroit retirees.

Or is it?

Former State Treasurer Andy Dillon in a July 9 email revealed by Detroit News reporter Daniel Howes questioned if financially restructuring the City's pension annuities fund would negate the need to drastically reduce payments to future retirees.

"In a July 9 e-mail, state Treasurer Andy Dillon signaled flexibility to manage the city’s unfunded pension liabilities, pegged by Orr at $3.5 billion: “Because pensions have such a long life,” Dillon wrote, “there are a lot of creative options we can explore to address how they will be treated in a restructuring.”
Governor Snyder's own general counsel Mike Gadola agreed with Dillon's assertion to explore a litany of alternative ways, outside of diminishing the primary monthly income hundreds of elderly retirees from Detroit depend upon. City Firefighters and Police Officers are not required to pay Social Security taxes.
"In a July 12 e-mail, the governor’s counsel, Mike Gadola, suggested to Snyder’s key advisers that he consider placing conditions on a Chapter 9 bankruptcy petition for anything that could impact pension benefits, general obligation debt and the sale of certain assets over a pre-determined value.
“I favor this approach ... primarily because I think we should exercise the governor’s ability under P.A. 436 to place conditions upon his authorization for a bankruptcy filing,” Gadola wrote six days before the city filed for bankruptcy. He suggested Snyder ask Orr to pursue “a more deliberative approach” to a process that rocketed to bankruptcy the next week."
Despite objections, Governor Snyder sheer determination to place everything on the bankruptcy table, won.

Reflecting on the Governors' previous statement in November 2010, reasonable conclusion could be reached personal resolve existed on Snyder's behalf to be key orchestrator, controlling Detroit's insolvency future.

On November 20, progressive think tank published a report by former Investment Banker for Goldman Sachs, Attorney Wallace Turbeville. The 56 page publication by Turbeville questioned if Detroit duly eligible and insolvent to file a petition declaring bankruptcy. 

Progressive news outlets including MSNBC with an article by 'All In with Chris Hayes' reporter Ned Resnikoff on November 20, quickly touted Turbeville's report breaking information related to Detroit's Bankruptcy files.

Eight months before on March 12, during exclusive interview with Independent Underground Radio LIVE Host Monica RW, C.P.A. Barrow described after reviewing key financial data for Detroit's claims of a irreparable fiscal crisis, failed to comply with basic General Accepted Accounting Principals (GAAP).

Tom Barrow Mar. 12, 2013 - Independent Underground Radio LIVE - Detroit's Fiscal Crisis Contrived? by Independent Underground

December 2, less than one week after Attorney Turbeville's appearance on the Progressive Radio Network top affiliated program Leid Stores with Urtice Reed, Barrow further defined his statements originally made in March, casting reservations on Detroit's indebted status.

If other opinions existed outside of Detroit's workers facing a possible day of reckoning in a U.S. Federal Bankruptcy Court, ultimately on December 3 Judge Rhodes must make a decision.

Dismiss evidence, testimony and the Michigan Constitution leading to open questions on if the City was met the test of a Chapter 9, Title 11 municipal bankruptcy, or join many others including Detroit's based C.P.A. Tom Barrow pondering Governor Snyder's true intent.

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