Tuesday, November 19, 2013

The $4 million that had to be kept a secret in Detroit

The City of Detroit may pay Barclay's, a London-based bank, as much as $4 million in fees as part of a $350 million loan deal, according to published news reports. These fees are in addition to the interest that the City of Detroit would also pay to Barclay's.

The details of this deal were originally intended to be kept secret. However, U.S. Bankruptcy Judge Steven Rhodes ordered all of the relevant loan documents to be made public yesterday afternoon.

Quite frankly, I'm not sure which part of this deal I find to be more ridiculous: the $4 million in fees or the fact that Kevyn Orr agreed to keep these details secret. Either way, I want to thank Judge Rhodes for making sure that the relevant details were made public.
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