Challengers to Detroit’s bankruptcy suffered a setback when a federal judge rejected an argument by public pension-fund officials that a state court must rule on the validity of the case before hearings can begin.
Goldman Sachs Group Inc. brought back Mark Schwartz to run its Asian business from Beijing, after an 11-year hiatus during which he ran George Soros’s hedge-fund group and started an investment firm with Raj Rajaratnam.
Detroit, the cradle of the automobile assembly line and a symbol of industrial might, filed the biggest U.S. municipal bankruptcy after decades of decline left it too poor to pay billions of dollars owed bondholders, retired cops and current city workers.
Harrisburg’s incinerator debt, which pushed Pennsylvania’s capital into insolvency, generated $49.1 million in fees to raise $310 million, a sign that the sales were at least partly driven by the profit they generated, said Mark Schwartz, a bankruptcy lawyer for the City Council.
The City Council of Harrisburg, Pennsylvania, filed for bankruptcy Oct. 11, a move challenged by Mayor Linda Thompson and Governor Tom Corbett. A judge on Nov. 23 will weigh their claims that the bankruptcy violates local, state and federal laws. Mark Schwartz, an attorney for the City Council, spoke about the events happening in the state capital for today’s issue of the Bloomberg Brief: Municipal Market newsletter.