National Review posted an article today about the Supreme Court allowing the sale of Chrysler to Fiat to proceed. The article notes:
"It should be noted that Chrysler's unions, unsecured creditors who jumped to the head of the line thanks to White House power play, did not give an inch on their base pay or pension terms."
I am really sorry to see this happen. Bankruptcy laws clearly state that secured creditors have to be paid in full before anyone else is compensated. The Indiana pension funds, who were secured creditors, did make a very good case when they wrote to the Supreme Court:
"The public is watching and needs to see that, particularly when the system is under stress, the rule of law will be honored and an independent judiciary will properly scrutinize the actions of a massively powerful executive branch."
The rule of law was not honored, and I am hoping that this is an isolated incident rather than the beginning of a trend.
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