Expert: Chrysler Plan Could Wreck Capital Markets

Taking money from retirees and giving it to the unions = theft.

clipped from www.newswise.com Newswise — The federal government’s Chrysler restructuring plan poses a major threat to capital markets, and Indiana pension plans are correct in opposing it, says a finance expert at the University of Indianapolis. The Chrysler proposal would pay just 29 cents on the dollar to secured creditors while paying billions to unsecured creditors, such as the United Auto Workers union. Such a move would violate the most basic ground rules that guide investors, says Matt Will, associate professor of finance at UIndy. “It disrupts 100 years of bankruptcy law,” Will says. “Instead of being first in line, you’re last in line.”