America’s bankrupt cities

An emergency manager has taken over control of Detroit from elected officials to deal with its crippling debt. What does this bode for the rest of the US? James McKeigue reports.

What's happened?

In the short term, the emergency manager, Kevyn Orr, will have to find a way to avert a $100m cash shortfall that's due to hit the state by the end of June. Longer term, he will try to find a way for the city to reduce or repay its $14bn in liabilities. If he fails, Detroit faces the largest municipal default in American history.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.