Federal law is already at play there, at least indirectly. Chapter IX of the Bankruptcy Code governs the bankruptcy of municipalities. The MI Emergency Manager statute is the State's attempt at a shortcut which permits state rather than federal control over the process. Now, I read that the statute is under attack and may be deemed illegal. That wouldn't be a bad thing in my opinion. There are many municipalities, including Detroit, which should declare bankruptcy if their [[and state) leaders had any smarts, or guts, not two qualities usually associated with politicians.

In a bankruptcy, the Trustee would be appointed by the Federal Bankruptcy Court judge, not some hack local politicians and would not be subject to petty local/state political pressures that bedevil EFMs.