Early Legacy: Impact already felt in Detroit’s bankruptcy

February 19th, 2014

The city’s bankruptcy filing and resulting legal tangles, mediation and early restructuring discussions have already had an impact on business practices, legal structures, general obligation bonds and public pensions, the Detroit Free Press reports today.

Reporter Nathan Bomey examines four ways Wall Street is changing because of Detroit’s dynamics. “Wall Street is quickly changing how it views municipal debt in the midst of the largest municipal bankruptcy in U.S. history,” he writes. Detroit “could uproot traditional financial principles about investing in public bonds, once thought to be rock-solid debt.”