Detroit’s banking guru to creditors: We have no way to pay you

A $20-billion problem

Miller Buckire, owned by St. Louis-based Stifel Financial, employs about 45 investment bankers. Sixteen of those members are working on Detroit’s restructuring.

The firm, originally hired last year by Detroit Mayor Dave Bing, has a $1.8-million contract with the city and is among nine legal and financial advisory firms the city has hired. Those contracts will cost more than $14 million.

Buckfire said he understands why some question those expenses, but he added that his firm, along with various others, are doing so at discounted rates.

“If this was a $20-billion corporate restructuring, the fees would be several hundred million dollars,” Buckfire said. “Given the value we are creating for the city, what is the price on that? We are all discounting this. Why is that bad thing?”

Article Appeared @http://www.freep.com/article/20130711/NEWS01/307110032/buckfire-detroit-bankruptcy

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