Detroit Retirees Vote to Cut Own Pensions, Bond Scum Plan to Fight it in Court

I understand how insurance works: You sell insurance, and when someone makes a claim, you do whatever you can to screw your policy holders.

In the case of Detroit pensioners, who have no access social security as municipal employees, made concessessions, but the bond insurers want it all:

Two major bond insurers that could lose billions on Detroit’s bankruptcy blasted the city’s plan to pay retirees more than financial creditors and vowed to fight retirees’ endorsement of the deal.

After pensioners voted by a wide margin to accept cuts and allow the Detroit Institute of Arts to spin off into an independent charitable trust, bond insurers Syncora and Financial Guaranty Insurance Co. (FGIC) pledged to continue their vigorous legal fight against the city.

Judge Steven Rhodes will now conduct a confirmation trial starting Aug. 14 to consider evidence and witness testimony before determining whether the plan is fair, feasible and legal and can be approved.

The bond insurers — which backed a $1.4-billion debt deal brokered in 2005 by Mayor Kwame Kilpatrick’s administration to fund pensions — voted no on the city’s offer to them, which ranged from 0 to 10 cents on the dollar.

BTW, they want the Detroit Institute of Art, one of the finest art collections in the United States, to sell off all of its art, because they cheated Detroit with their (probably illegal) interest rate swaps, fair and square.

Not enough bullets.