restructuring law

The Detroit Free Press reports on Gov. Rick Snyder's historic testimony in a federal  court trial over whether Detroit qualifies for bankruptcy. Snyder testified that he "knew that he had the power to make Detroit’s bankruptcy filing contingent on protecting pensions — but he chose not to exercise it and impede efforts to fix the beleaguered city," the newspaper reports.

The Free Press also reports: "The Michigan Constitution protects public pensions as a 'contractual obligation' that cannot be 'diminished or impaired,' but federal bankruptcy law allows contracts to be severed."

Snyder is going to testify again today.