A bankruptcy court judge on Monday approved Detroit's proposal to repurchase nearly $1.5 billion of existing water and sewer revenue bonds tendered by investors and to refinance the debt to save money. The ruling by Judge Steven Rhodes, who is overseeing Detroit's historic bankruptcy case, clears the way for the sale of about $1.8 billion of refunding bonds to pay for the tender and raise $162 million for new projects. Treatment of the city's $5.2 billion of outstanding water and sewer bonds was a big hole in Detroit's plan to adjust $18 billion of debt after most investors in those bonds rejected the plan earlier this summer. Detroit, which filed the biggest-ever U.S.
By Gary Robertson RICHMOND Va. (Reuters) - Former Virginia Governor Bob McDonnell testified on Monday that his finances were in good shape as he underwent prosecution questioning in the fifth week of his federal corruption trial. McDonnell, 60, testified under cross-examination that he did not need money from businessman Jonnie Williams Sr. The dietary supplement entrepreneur is alleged to have given McDonnell and his wife, Maureen, $177,000 in gifts and loans to promote his company. Attorney Michael Dry pointed to emails from Maureen McDonnell and the governor's sister expressing concern about financial problems. Dry then pointed to the $50,000 loan that Williams gave Maureen McDonnell and the $70,000 in loans to McDonnell through the corporation that McDonnell and his sister had set up to run beach properties.
FERGUSON, Mo. (AP) — Schools in Ferguson welcomed back students from their summer breaks on Monday, providing the children with a much-needed break from the raucous street protests and police patrols that have gripped the St. Louis suburb since a white officer killed an unarmed black man more than two weeks ago.
By Jon Herskovitz AUSTIN Texas (Reuters) - Attorneys for Texas Governor Rick Perry filed a motion on Monday to dismiss two felony charges of abusing his power, saying it is unjust to prosecute the leader of the state over a political dispute by trying to criminalize a veto. Perry, a possible candidate in the 2016 Republican presidential race, was indicted earlier this month for trying to use the veto to force the resignation of a prosecutor in Travis County, a Democratic stronghold in the Republican-dominated state. "Subjecting any sitting governor to a criminal prosecution and injecting the judiciary into a political dispute would be an unprecedented assault on this cherished separation of powers," the motion filed in a Travis County district court said. Perry, the longest-serving governor in the state's history, became the target of an ethics investigation last year after he vetoed $7.5 million in funding for the state public integrity unit run from the Travis County district attorney's office.