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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (35438)	5/7/2009 9:28:23 PM
From: TimF	Read Replies (1) \| Respond to of 71588

Sure its about a bankruptcy case, but it is political maneuvering. The government gives TARP and bailout money to many of the other creditors, and then gets them to follow its tune on this issue. Its "tune" in this case is to give politically favored junior creditors less of a write down than the senior creditors. Either in a liquidation or a reorganizing the senior creditors should get priority. In a reorg, the government might get priority for its own claims, if and because its putting up more money, but the issue I'm talking about is not the government's own claims but other creditors (mostly the unions and pension fund).