Only Wall Street Wins in Detroit Crisis Reaping $474 Million Fee

Only Wall Street Wins in Detroit Crisis Reaping $474 Million Fee

Jeff Kowalsky/Bloomberg

The city started borrowing to plug budget holes in 2005 under former Mayor Kwame Kilpatrick, who was convicted this week on corruption charges. That year, it issued $1.4 billion in securities to fund pension payments. Last year, it added $129.5 million in debt, 9.3 percent of its general-fund budget, in part to repay loans taken to service other bonds.