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Pun watch: Chrysler edition

October 27, 2009

Front page of today's WSJ: Fiat Models to Drive Chrysler. On the plus side, the Alfa Romeo brand will be making its way to our shores.

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Bankruptcy law is such a nuisance

June 8, 2009

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 […]

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Bankruptcy IS messy, after all

June 3, 2009

And so it begins: a court has agreed to hear the appeal of a small group of Indiana pension funds protesting the sale of Chrysler's assets to Fiat. These funds hold just 0.6% of Chrysler's outstanding debt, but they've managed to throw a rather outsized wrench into the works. There are no such things as […]

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The Inviolate Principle...?

May 29, 2009

Those naive financial journalists at The Atlantic are back! Andrew Gelman pointed me toward this misguided look at the latest auto bankruptcy (you know the one I mean). Key quote: Purists -- and virtually every academic economist one happens to encounter -- wonder what happened to the once inviolate principle of rewarding risk-takers. You'll have […]

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The CDS made me do it

May 1, 2009

The Chrysler debacle has given rise to another CDS-related claim: these dastardly products permit scenarios in which bondholders are willing to put a company into bankruptcy by distorting the investors' incentives.  If the bondholders own a lot of CDS, then bankruptcy is more profitable than ongoing operations or restructuring. There are two major problems with […]

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