Catching Up

So I've been off the grid for a few weeks, and of course after months of little to talk about, the world gave us a bounty of stories about financial distress, and related topics, each of which would merit its own post. But I'm going to hit them quickly to get caught up again this holiday weekend:

• I've always enjoyed reading Hamilton's Report on Public Credit, which has something of a reorganization plan about it, as well as a good discussion of distressed debt trading. Thus, I'm largely in agreement with those that say that Jackson and not Hamilton should go to free up space on one of our bills. But what about having two types of bill in each denomination? Harriet Tubman on some dollar bills, with Washington on the others, seems about right. 
• I joined an amicus brief for the loosing side in in Baker Botts, L.L.P. v. ASARCO, L.L.C., the most important case of the term.  (Or maybe not.)  Thus, it will be no surprise that I think the dissent has the better argument. The majority seems to be totally out of touch with the reality of bankruptcy practice, and its opinion seems to be an open invitation for bomb throwers who stop just short of Rule 11.
• Greece in undoubtedly between a rock and a hard place. Its economy is likely to be devastated if it leaves the Euro, at least in the short term, and it certainly will be further devastated by more austerity. Does it really matter which way they vote? The larger EU has to think about precisely what it is trying to achieve here. Yes the current Greek government is a bit buffoonish, but who helped to elect them?
• Puerto Rico is obviously in quite a similar situation. The most realistic outcome seems to me to be (a) an exchange offer of the Commonwealth debt tied to realistic (non-punitive) reforms and (b) chapter 9 for the utilities. Part "a" of course risks holdout problems – can exit consents do the trick?

That might generate some comments this weekend.

Comments

[Adam Levitin]

Stephen,

You're right that we don't have to limit ourselves to one image per type of currency, but I think the better question is why do we put people--especially Presidents--on our currency at all? That seems like a bad monarchalist vestige. I'd much rather have pictures of great American fauna, flora, and man-built monuments.

Going a step further, one might ask why we still have paper currency at all? I wonder if it would be cheaper to provide everyone with an electronic transaction account via the Fed, with paper currency redeemable for electronic credits.

Adam

[Robert White]

Baker Botts establishes that:
Time spent litigating a fee application against the administrator of a bankruptcy estate cannot be fairly described as “labor performed for”—let alone “disinterested service to”—that administrator.

That should mean the Trustee is conflicted with and adverse to the estate when joining the defense of Estate Counsel’s fees, below or on appeal.