« Brains for Hire | Main | Jeff Redfern Meets the Repo Man »

I Wade Into Presidential Politics

posted by Stephen Lubben
Or why the bankruptcy professor is relevant, over at Dealbook.

Comments

I would like to dispute:
"The only way the government guarantee would have changed this is if it were nothing more than a fig leaf, disguising what would have been for all intents a government-financed debtor-in-possession loan."

I think it would have been possible to subsidize a DIP loan so that the DIP provider only had some percent of of their investment at risk. The percent might be 50%, 25%, or 5% The precise amount could be determined by a bidding process.

Berkshire-Hathaway had money for a price and sufficient security all through the crisis.

I don't think it was an all or nothing situation.

Note that the 2010 IPO was helped along by the existence of tax losses carried over from old GM to new GM.

It's hard to take anything either candidate says about GM very seriously. Everything is merely calculated to appeal to their base while trying to win independents in Ohio. Factual accuracy is at best secondary.

Trying to counter political positioning with appeals to facts seems like a rather thankless task.

Note that Judge Gerber in his decision on the 16th states, entirely in dictum but still, at page 11 that no private money was available.

AndrewDover - I think you are describing exactly what Mr. Lubben was referring to as a fig leaf. Unless the public risk amount was quite low, all you are describing is a public subsidy to a private lender to offer a loan. I also don't think that this is what Romney thinks he means, although as D points out, he probably doesn't really mean anything except for vague talking points.

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF