Bankruptcy law is such a nuisance

June 8, 2009 in Economics

The White House tried to block the Indiana pension funds' appeal of the Chrysler sale from ever reaching the Supreme Court. U.S. Solicitor General Elena Kagan argued that the funds lack the standing to make their appeal, and that not only should their claims be dimsissed, but the Supreme Court does not even have the ability nor jurisdiction to hear them in the first place. In essence, the Administration was arguing that it was beholden to no one and no court when it comes to determing the use of TARP funds.

With minutes to go before the Chrysler deal deadline, Justice Ginsburg chose to disregard the White House's argument and declared a temporary stay over the asset sale - a minor victory for the Indiana funds. This gives the Court more time to make a decision, though it may ultimately side with Obama and decide to disregard the appeal.

If the Court decides that the White House is wrong and concretely delays or restructures the asset sale, will Obama demonize the Justices as unpatriotic? Perhaps he will save that rhetoric for the pension funds.

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