White House nixed Detroit bailout as "not viable"

2:53 pm
Tue February 11, 2014

White House nixed Detroit bailout as "not viable"

Lead in text: 
An official says the administration didn't have tools available to help the city get out of bankruptcy and that it was unlikely that Congress would approve any proposal to provide them.
Washington The White House ruled out a bailout for bankrupt Detroit because it wasn't politically possible, a senior Obama administration official said Tuesday. Gene Sperling, the director of the White House National Economic Council and the point person on the administration's efforts to help the struggling Motor City, told reporters Tuesday that it would have raised false hopes if the Obama administration had floated the idea of a bailout for Detroit.