“Bankruptcy attorneys and business leaders fear a bumpy ride as the U.S. government takes the wheel at General Motors…. Some turnaround specialists are concerned the government-guided bankruptcy reorganizations of Chrysler and GM could make it harder for companies to obtain capital. In these cases, the companies’ labor union, the United Auto Workers, received more favorable treatment than the companies’ secured creditors. That violates well-established bankruptcy law principles, said Peter Kaufman, president of Gordian Group LLC’s restructuring practice in New York.” (Business First ^[1], Friday)

The Law of Unintended Consequences strikes again.

FEE Timely Classic
“Speculation and Risk” ^[2] by Dwight R. Lee