CHICAGO -- The Securities Industry and Financial Markets Association warned Michigan Gov. Rick Snyder that the approach he is backing in Detroit’s bankruptcy will cost cities across the state, and urged him to uphold the city’s unlimited-tax general obligation bond pledge.

SIFMA sent a letter Thursday, the day of Detroit’s historic Chapter 9 filing, to Gov. Rick Snyder and Michigan Treasurer Andy Dillon, warning them that treating Detroit GOs as unsecured will likely drive up borrowing costs for issuers across the state, and imploring them to abide by the legal securities of different bonds.

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