Tuesday, June 9, 2009

Chrysler deal on hold

"The Supreme Court issued a temporary freeze Monday on the Obama administration's planned sale of bankrupt Chrysler to Fiat, leaving lawyers, politicians and South Florida car dealers to ponder the fallout from a delay. The high court agreed to a request for a stay from Indiana state pensioners and some public interest groups, who alleged the speedy bankruptcy process and administration rescue of Chrysler trampled on long-established rights of creditors and misused taxpayer bailout money. ''Do contracts and financial law still mean anything or are we moving in a different direction?'' Thomas E. Lauria, a Miami lawyer with White & Case representing Indiana pensioners, asked in an interview. "


It's about time.

Yes, terrorists in prison camps have due process rights. And, they're entitled to insist upon the government's adherence to established rules of law and procedure.

But, investors and bond holders are also entitled to due process and statutory protections.

It's absolutely amazing that Justice Ruth Bader Ginsburg is the only person (so far) who has insisted that the Obama administration adhere to the established laws of contract.

(By the way, this lawsuit wasn't brought by fat cats and Wall Street investors. It was brought by pension funds. Who did you think holds auto stocks and bonds?)

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