Governor Rick Snyder: 'Let me be blunt. Detroit's broke'
19 July 2013 Last updated at 11:57 BST
Detroit has become the largest city in the United States ever to file for bankruptcy.
It has debts of at least $15bn (£10bn) and is is seeking protection from creditors who include public-sector workers and their pension funds.
The crisis follows decades of industrial decline, a shrinking population and falling tax income.
A video of Governor of Michigan Rick Snyder was posted online, where he announced: "Let me be blunt. Detroit's broke."