Skeel Tells Congress: Obama is violating basic rules of bankruptcy with Chrysler, GM
The Obama administration's handling of the Chrysler and GM bankruptcies "violates the basic rules of bankruptcy in ways that could have dangerous consequences", David Skeel told the House Judiciary Committee on May 21.
"Our bankruptcy laws are well designed to successfully restructure the automakers," he said. "There is a widespread misconception that bankruptcy means the death of a business, but the American bankruptcy laws are designed to preserve and restructure viable enterprises like the carmakers. The first major mistake with the carmakers was waiting so long to consider the bankruptcy option."
A complete copy of is testimony is available here.