I’m very happy to read that Justice Ginsburg of the US Supreme Court has delayed the bankruptcy proceedings for Chrysler Corp.
The entire episode has been a farce, ignoring US law and riding roughshod over the legally and contractually protected rights of creditors. It appears designed to hand over Chrysler to interests that are political allies and cronies of the Obama administration and the Democratic Party. It’s been sickening to watch, particularly as lower courts have sycophantically sided with the powers that be and refused to uphold the law.
Please note the hypocrisy and expediency of the US Government’s position:
Indiana state Treasurer Richard Mourdock told CNNMoney.com Monday morning that it was important to protect secured lenders, including three of his state’s public employee pension funds, which have a priority in bankruptcy cases to recover debts owed to them.
The three Indiana funds loaned $42 million to Chrysler and would recover only 29 cents on the dollar under the proposed Fiat-Chrysler deal.
Mourdock also argued that the Treasury Department should not have been allowed to use money in the Troubled Asset Relief Program, or TARP, to help Chrysler and General Motors (GMGMQ) reorganize.
But in a filing Monday U.S. Solicitor General Elena Kagan, arguing for the administration, said the losses to the Indiana pension funds “cannot outweigh” the potential broader problems a collapse of Chrysler would present.
“As an economic matter … blocking the transaction would undoubtedly have grave consequences,” Kagan wrote. “Even if the stay were continued for a short time and Fiat did not withdraw from the transaction, the consequences of delay for both Chrysler and the United States government would far outweigh any benefit to applicants.”
The Indiana position is clearly, prima facie correct. TARP applies to financial institutions only, and there is no legal way to use its funds to rescue Chrysler; and the rights of creditors are protected under US law and by contract. The Obama administration has chosen to ignore these inconvenient facts, and bull ahead with a bankruptcy package that is, in fact, illegal. Note the Solicitor General’s arguments. She doesn’t go into the law at all, because she knows that the law is squarely against her. Instead, she argues for expediency.
Kudos to Justice Ginsburg for taking at least this step. Now let’s hope that she and the other Justices intervene to stop this rape of our laws and our economy in the name of political favoritism and expediency. If we are not a nation of laws, we are in a state of anarchy, where anything goes and politicians can get away with whatever they please. That can only end in disaster for all of us, and for the Republic. Only SCOTUS now stands between us and that miserable fate.
Peter
Scotus- Hey, don't worry about it- we can get a bunch of those "empathic" judges in there and then we won't have to worry about the "law" at all.
Kagan's "argument" is a PERFECT example of what the big zero wants for a judge. The final nail in the feel good societies coffin.
I hate to say it, but I'm not confident that SCOTUS is willing to stop this. Recall Kelo vs New London and their approval of McCain-Feingold and asset forfeiture.