Debt in Bankruptcy Rules are Important to Everyone

I am repeating this unfortunate account because America still has not grasped its true meaning.

It isn’t often when you see the White House make one decision that can truly impact the financial direction of the country, without any legislation by Congress or by benefit of full, extensive national debate. That happened when President Obama forced a settlement on senior debt holders of Chrysler.

The result was the gift of major equity positions to the current Administration’s favored United Auto Workers Union, followed by a decision to hand Fiat control of operations, at the expense of investors who previously had been asked by the government to aid in Chrysler’s bailout, all in return for that senior position.

Normal bankruptcy proceedings would have recognized proper legalities but the President simply brushed them aside.

Still, debt in bankruptcy rules are important to everyone. Break them and nothing can be sacred under law, and under Executive Order.