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View Diary: The Successful Hostess Business Plan Included Bankruptcy/updated w/wages language (106 comments)

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  •  The BANKRUPTCY CODE needs to be amended to (50+ / 0-)

    make this harder to do.  If one couldn't discharge the pensions plans, and had to pay them up, a lot of this could not happen. but the minute PBGIC became available to underwrite dumping pension plans, and the Code allowed them to be dumped, then it became a standard element in vulture capitalist company mismanagement. Just like borrowing all that money to pay vulture capitalists while intending it not be payable by the company should be a fraudulent transfer to the owners of the papers, whenever done, not just done less th an a year and a day before the filing.

    There are a number of things in the BC which make it easier for the professional capitalist, like the inability to deal with first home mortgages and student loans. Now the BC is just a standardized weapon for the wealthy and manipulative to use to strip cash out of everyone else, and then complain their victims are takers.

    •  How is this even possible? (2+ / 0-)
      Recommended by:
      sb, OhioNatureMom

      Regarding the author's description of the executive's taking the worker's retirement contributions, this should not be subject to being pledged as collateral for the debt of the company.  Therefore the Pension Benefit Guarantee Corporation (PBGC) should not have to come into play (although the workers should probably still file a claim to protect their interests).

      Perhaps the experts at Credit Slips can answer some of these questions.  I have been out of the bankruptcy practice for five years now, and my knowledge of bankruptcy law is fading rather rapidly.  But I would like to hear the thoughts of the experts at Credit Slips about the Hostess bankruptcy, given these facts.

      •  I'm not a lawyer, but my observation has been that (8+ / 0-)

        corporations pretty much get what they want; and hedge funds write their own rules.

        It wasn't always that way, of course. Before Reagan, corporations actually had to obey the law. But Reagan wrought a basic change in America that most people still don't recognize: he set in place the process to turn America from an egalitarian democracy into a semi-feudal oligarchy in which corporations (and the wealthy) essentially answer to no one -- no the government, the workers, or even their stock holders.

        •  Maybe Joe Biden can end Delaware's corruption (0+ / 0-)

          Without the long-term cooperation of Delaware in this lowering of standards and responsibilities, corporations would not be allowed to engage in many of these corrupt practices.

          The GOP is the party of mammon. They mock what Jesus taught.

          by freelunch on Sun Nov 25, 2012 at 10:33:08 AM PST

          [ Parent ]

          •  Blaming it on one state is naive. Every state (0+ / 0-)

            has its own corporate law, and states are more or less likely to try to reign in corporations. But on the whole, states have gotten more corporate friendly and less concerned with the actual people they serve.

            But none of that has any bearing on a whole range of corporate issues that fall under Federal jurisdiction: securities laws, mortgage practices, banking, and most of all bankruptcy. The Feds have all but quit regulating corporations in any form --- that's why the cycle of recessions has become more frequent and more deep. it's also why we are in the current economic malaise. And the malaise will continue so long as the governing philosophy of both Federal and state governments is to coddle corporations at the expense of citizens.

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