Notes From Babel

Obama Team Said to Explore `Prepack’ Auto Bankruptcy

leave a comment » has this article on Obama’s ideas regarding a prepackaged bankruptcy for the Big 3. However, establishing bankruptcy laws is a power vested in Congress under Article I, section 8 of the Constitution. Bankruptcy judges, appointed by the U.S. court of appeals for each circuit, exercise the discretion to apply these laws and create the kind of “packages” that Obama is thinking about. (Albeit they do not “pre”-package–judges review the facts at hand, not the facts as they may be.)

I don’t want to sound like I’m being critical of every idea that seems to pop into our President-to-be’s head, but is this constitutional? Or is this another example of how “important” things (like saving inept companies and corrupt union contracts) are ruining our constitutional framework?


Written by Tim Kowal

November 22, 2008 at 3:44 pm

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