In a bankruptcy, Diana...

by J. Vega - 5/7/12 6:53 PM

In Reply to: Actually most of them. by Diana Moderator

Diana, in a bankruptcy the bond holders have always been at the top of the list for priority when the assets are divided. With GM, Obama shoved them to the bottom of the list, destroying most of the value of the bonds. Obama basically threw away the legal contract governing bonds. I'm surprised that he was allowed to get away with that. That move lessened the safety factor in bonds of other companies. If a problem developed with their issuing company, could the government again shred the existing legal agreement in those bonds? What he did with GM, he might do to others.