Daily Archives: November 17, 2012

Detroiters demand ouster of Financial Advisory Board, other PA 4 appointees

 Detroit not broke according to FAB docs
• Duty to bargain reinstated
• People say: “Let the banks bleed”

DETROIT– Despite the definitive defeat of Michigan’s Public Act 4 (PA4) at the polls Nov. 6, its minions handling City of Detroit governmental affairs appear determined to stay until they are dragged out by their heels.

Members of the community and city workers appear equally determined to see them vanish into the dustbin of history. At meetings of the city’s “Financial Advisory Board” (FAB) Nov. 12 and of the Detroit City Council Nov. 13, they demanded “people before banks,” and excoriated state-appointed officials and their elected collaborators. They said that “social tension” in Detroit is rapidly rising.

FAB meeting Nov. 12, 2012

“We are proceeding forward with the reform agenda,” Walter ‘Kriss’ Andrews said at the beginning of the Nov. 12 meeting of the FAB, established by the city’s PA4 Financial Stability [consent] Agreement (FSA). “We are not planning to stop at all. The repeal of Public Act 4 didn’t put one dime in the city’s coffers.”http://www.detroitmi.gov/Portals/0/docs/mayor/pdf/Financial%20Stability%20Agreement.pdf

The nine-member FAB is an appointed board which can overrule the city’s elected officials. Andrews is the “Project Management Director” for Detroit, appointed to his $220,000 -a year position by Michigan Governor Rick Snyder and Detroit Mayor Dave Bing to enact a “reform agenda” by dismantling the city.

Andrews presented a 77-page report to the FAB. He claimed it shows the city is in imminent danger of going broke. However, the report does not include in city revenues the remaining $81 million the city borrowed from the state under the consent agreement, or pending property tax payments. Instead, it adds a costly “re-structuring analyst,” likely a firm. Detroit would be liable for half the costs of that firm.http://www.detroitmi.gov/Portals/0/docs/mayor/FAB_Meetings/FAB%20discussion%20document%202012-11-12%20vfin.pdf

Public calls FAB illegal, wants banks to pay to rebuild Detroit

Read on.

On a side note: FAB chair Pierce’s bank a defendant in national “LIBOR” lawsuit

SEC drops lawsuit against executive in financial crisis case

The U.S. Securities and Exchange Commission has dropped its civil lawsuit against a former executive of GSC Capital Corp who was accused of negligence for helping mislead investors on a JPMorgan Chase & Co mortgage-bond deal.

The SEC’s decision to drop the case against Edward Steffelin, a former managing director at GSC Capital Corp, was disclosed in a court filing Friday in U.S. District Court in Manhattan.

“Our duty in all cases is to achieve a just and appropriate outcome,” SEC spokesman John Nester said. “Our decision here appropriately reflects information that came to light as the litigation progressed.”

Read more: http://www.foxbusiness.com/news/2012/11/16/sec-drops-lawsuit-against-executive-in-financial-crisis-case/#ixzz2CWc8yTzr