Obama Treasury secretary: No federal bailout for Detroit

On Sunday’s broadcast of ABC’s “This Week with George Stephanopoulos,” Treasury Secretary Jack Lew ruled out a federal bailout for Detroit on the heels of its bankruptcy declaration earlier this month.

“You know George, Detroit’s economic problems have been a long time in developing,” Lew said. “We stand with Detroit trying to work through how it approaches these issues. To the extent there are normal relations between the federal government and state and local government, we have been using those methods. Even in the Treasury Department, we have a program where we work to help with housing programs. I think when it comes to the questions between Detroit and its creditors, that’s what Detroit is going to have to work out with the creditors.”

After that reply, Stephanopoulos went on to ask if a federal bailout for Detroit was off the table.

“I think Detroit is going to have to work with its creditors on this,” Lew added.

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