Conyers calls for hearings on city bankruptcies

By: AP
By: AP

DETROIT (AP) -- U.S. Rep. John Conyers of Michigan is calling for congressional hearings on Detroit's bankruptcy.

The Detroit Democrat says Chapter 9 bankruptcies by local governments are on the rise, and Congress should explore a number of "troubling" ramifications of Detroit's bankruptcy. Conyers wrote a letter to the House Judiciary Committee's Republican chairman saying he's concerned the bankruptcy process is being misused to "unilaterally" abrogate Detroit retirees' pension and health care benefits.

He also has questions about whether the state misled pension funds' lawyers before making the filing and if an unelected official such as Detroit's state-appointed emergency manager should have been able to commence the filing.

Conyers wrote his letter on Friday to Virginia Rep. Bob Goodlatte. Conyers says the Detroit case could set precedents around the U.S.


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