I pulled up the news this morning to see that some of the Chrysler creditors are not done yet. Good on them. In addition to the tales of thuggery by the Obama Officials in putting together the deal “Play ball with this, or we will wreck you.”, I was constantly left wondering “What about the fiduciary duties of the pension funds, hedge funds, etc.
Apparently,some are not really to give up yet. Good on ’em. The Indiana State Police Pension Fund, the Indiana Teacher’s Retirement Fund and the state’s Major Moves Construction Fund have all appealed to the United States Supreme Court. The claim remains the same. The deal unfairly favors unsecured creditors over secured creditors. They are also challenging the U.S. Treasury’s use of TARP funds to finance Chrysler while it sprints through bankruptcy proceedings, claiming that Lil’ Timmy and his scofflaws did so without Congressional approval. The money quote, from the AP:
The government-sponsored reorganization of the U.S. auto industry, including the Chrysler bankruptcy proceedings, “is a matter of incredibly high profile and importance,” the funds said in their request to the high 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 the massively powerful executive branch.”
Of course, if the If Lord Zero’s merry band of scurvy knaves gets away with this particular instance of Theft-By-Executive-Fiat (see what I did there?), we will have yet two more very serious problems to contend with. The first being that institutional investors will be far more reluctant to invest in American businesses, further strangling the potential for recovery as pension funds and the like will seek other investments that will be less likely to be stolen by the government. The second is that the legitimacy of the American legal system will suffer a crippling blow, a result surely not lost the harbingers of HOPEYCHANGEYTUDE™ but damaging to the Republic no less, as will be the denial of bailouts to entities like state pension funds by the very entity that robbed them, because they are nothing but a bunch of filthy speculators, making their money by investing it in American companies, rather than helping their fellow man to “become more equal”.