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Was it legal for Detroit to file for bankruptcy?

23 October 2013 Last updated at 10:57 BST

Back in July the city of Detroit filed for bankruptcy, after years of struggling to pay off debts of $18bn (£12bn).

Now a hearing is taking place in the city to determine whether Detroit is in fact eligible for bankruptcy, and whether doing so would violate its constitutional obligation to protect public pensions.

Samira Hussain, the BBC's reporter in Detroit, told the Today programme's business presenter Simon Jack this could have ramifications for pension plans across the US.

First broadcast on BBC Radio 4's Today programme on Wednesday 23 October 2013.

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