Author Topic: Ruling clique gets Congress to legalize plunder!  (Read 744 times)

Offline je_freedom

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Ruling clique gets Congress to legalize plunder!
« on: January 03, 2016, 12:30:04 PM »
Here's another one of those extremely important stories that never got reported:

In 2005, the ruling clique had Congress legislate for them a special privilege
that enables them to loot EVERYBODY in a bankruptcy.

Normally, when a company files for bankruptcy,
its assets are immediately frozen,
until the court decides who gets what.

The Bankruptcy Reform Act of 2005 gave the executives a special privilege
that can hardly be imagined:
It exempts derivatives from being frozen when bankruptcy is filed.

That means that, even after the company files for bankruptcy,
the executives can have the company continue creating and trading in derivatives!
While the court is taking time to decide how to distribute the company's assets,
the company's executives can create derivatives -
designed to transfer all the company's assets to themselves!

The shareholders are left with nothing.
The creditors are left with nothing.
Even the bondholders are left with nothing!
The executives can take EVERYTHING!

In all the ballyhoo of reporting when the bill was passed in 2005,
somehow the news media (owned by the ruling clique)
managed to leave out this "detail"
about how the ruling clique can take EVERYTHING!

Global Financial Crisis of 2008[edit]

As the Financial Times noted during the fall of 2008, "the 2005 changes made clear that certain derivatives and financial transactions were exempt from provisions in the bankruptcy code that freeze a failed company's assets until a court decides how to apportion them among creditors."[citation needed] This radically altered the historic process of paying off creditors and did so just a few years prior to trillions of dollars in assets going into liquidation as a consequence of bankruptcies following from the global financial crisis of 2008.
Extremism in the defense of liberty is no vice. And moderation in the pursuit of justice is no virtue.
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