The union-brokered $2 billion bonus revelation comes as President Barack Obama sent a White House delegation led by Attorney General Eric Holder to Detroit on Friday to announce a $320 million aid package.
The timing of the unfolding bonus scandal creates a politically liability for Obama, as in 2012, Obama declared that his leadership kept Detroit from going bankrupt.
"We refused to throw in the towel and do nothing. We refused to let Detroit go bankrupt. I bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way," said Obama.
Detroit, which has $18.5 billion in long-term debt obligations, is the largest municipal bankruptcy in U.S. history.
If Lois Lerner is any guide, the perpetrators will retire and continue to leech off of the productive.