Late-2000s Financial Crisis Latest News: In Detroit's Ruin, Law Firms See Land of New Opportunity

Wochit
Late-2000s Financial Crisis Latest News: In Detroit's Ruin, Law Firms See Land of New Opportunity
With more than $18 billion at stake in Detroit's restructuring, big law firms and other advisers are clamoring to represent the city's many creditors -including some advisers not exactly known for municipal work.For creditors and related parties, there is clearly a lot at stake. That means bondholders, insurers, retirees and others are sure to be accompanied in court by platoons of lawyers. The White House is looking for ways to help the city of Detroit after the city filed for bankruptcy protection on Thursday, but Vice President Joe Biden said it was unclear what the administration could do. "Can we help Detroit?" Biden said in a response to a question from a reporter. "We don't know." Detroit, a former manufacturing powerhouse and cradle of the U.S. automotive industry, filed for Chapter 9 bankruptcy protection, making it the largest municipal bankruptcy in U.S. history. This-automobile-capital could within days become the country's largest-ever municipal bankruptcy case, people familiar with the matter said, as the city's emergency manager accelerates his plan for restructuring nearly $20 billion of long-term liabilities.
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