Saturday, September 19, 2009

Corporate Bankruptcy is Stealing


By: Scott Graulich

Lawyers have figured out a way to steal money from hardworking Americans and congress has helped them. Let's take two examples of what recently happened in two well known bankruptcies. Washington Mutual Bank executives made some very bad decisions, giving loans to undeserving customers which forced the bank into bankruptcy. Shareholders, pension plans and investors were conveniently wiped out completely. The bank was then purchased by JP Morgan Chase who continues to operate the bank and make money. Therefore the brand and all its assets are alive and well while everyone who put money into the stock has suffered greatly. It just does not make any sense.

The second example is General Motors. Suppliers, creditors and investors were all wiped out and General Motors can start a new without any obligation to previous individuals and companies who helped them succeed. These two examples send a horrible message to America about responsibility. It will have terrible implications, not only financially, but morally in our society.

References:
http://money.cnn.com/2009/08/18/autos/general_motors_second_chance.fortune/index.htm
http://www.fiercefinance.com/story/still-paying-sins-wamu/2009-09-10
http://www.articlemaniac.com/article/238099/when-are-bankruptcy-lawyers-needed.html

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