REGARDING THE EMERGENCY MANAGER’S POST PETITION FINANCING PROPOSAL

I'm glad you have redundant information sources. I have another _draft_ resolution I hope they might pass a version of. Do you have any thoughts about it ?

WHEREAS Section 1109 a) of the bankruptcy law states: “The Securities and Exchange Commission may raise and may appear and be heard on any issue in a case under this chapter” which is incorporated into Chapter 9 bankruptcy by Section 901, and

WHEREAS The Levin-Coburn Report on the Financial Crisis issued April 13, 2011 by the U.S. Senate Investigations Subcommittee provided a powerful glimpse into the wrongdoing of the largest banks in the mortgage crisis, and

WHEREAS Detroit was especially targeted by the banks and other lenders leading to more than 100,000 foreclosures and the subsequent loss of more than 200,000 residents.

WHEREAS The swap agreements of 2005 and 2006 were forcefully endorsed by bond rating agencies and Wall Street firms

WHEREAS The SEC has many ongoing investigations and prosecutions of financial institutions in relation to municipal bonds, for example Reuters reported on July 24 that two former UBS vice presidents along with the former UBS global head of commodities were sentenced to prison for deceiving cities and towns by rigging bids to invest municipal bond proceeds and

WHEREAS The New York Times reported on July 12 that the former head of Bank of America’s municipal derivatives desk was charged with conspiracy to defraud the United States, wire fraud and conspiracy to make false entries in bank records, noting that 13 individuals from banks, including Bank of America, JPMorgan, UBS, Wells Fargo and General Electric have paid more than $700 million in restitution and penalties, and

WHEREAS An August 2, 2013 Bloomberg article reports that the Commodity Futures Trading Commission investigation "uncovered evidence that banks reaped millions of dollars in trading profits at the expense of companies and pension funds by manipulating a benchmark for interest-rate derivatives," and

WHEREAS In the month of October alone a tentative $13 Billion settlement was announced between JPMorgan Chase and the U.S. Dept. of Justice and a federal jury found Bank of America liable of selling defective mortgages as well as a top manager individually,

WHEREAS A thorough examination of the role of the banks in the current bankruptcy is yet to be done,

WHEREAS Only the U.S. Securities and Exchange Commission can fully investigate and expose any misconduct related to these transactions

THEREFORE BE IT RESOLVED

The Detroit City Council hereby requests the U.S. Securities and Exchange Commission intervene in the Detroit bankruptcy proceedings to fully expose role of the banks in the financial problems of Detroit.