Bankruptcy+and+Bailouts

 **__// BANKRUPTCY AND BAILOUTS //__** Article I, Section 8, Clause 4 gives congress the power to establish uniform laws on the subject of bankruptcies throughtout the United States. A bankrupt individual or company or other organization is one a cout has found to be insolvent- that is, unable to pay debts in full. **Bankruptcy** is the legal proceeding in which the bankrupt's assets- however much or little they may be- are distributed among those to whom a debt is owed.



// Bankruptcy // President Obama
 * has shown he isn't afraid to spend billions of dollars on corporate bailouts or to run up trillions of dollars in U.S. debt to battle an economic crisis.
 * he has initiated the largest expansion of federal government since World War II
 * he set up a massive challenge for his administration
 * During the first 100 days of his presidency, Obama has signed a $787 billion stimulus bill into law, proposed an eye-popping $3.6 trillion budget for the next fiscal year, taken over a massive $700 billion Wall Street bailout program and created other billion-dollar programs to help grease the economic wheels.
 * Analysts call the spending spree "unprecedented" when the nation is not in a declared war, and they say the challenges that accompany it are a logical result.

[|Chrysler]
 * Chrysler plans to file for Chapter 11 bankruptcy, a White House official confirmed Thursday.
 * Chrysler faces a Thursday deadline to produce a restructuring plan, but the automaker's creditors reportedly declined an offer Wednesday from the Treasury Department that would give the lenders $2.25 billion in exchange for forgiving Chrysler's $6.9 billion debt.
 * Chyrsler took the greatest bailout and then proceeded to ask for more just before they filed Chapter 11 bankruptcy.

What Will Our Government Do
 * The president also announced that Chrysler has met his demand to strike a partnership with Italian automaker Fiat and said he thinks the alliance has a "strong chance of success."


 * Chrysler faced a Thursday deadline to produce a restructuring plan, but some of the automaker's creditors reportedly declined an offer Wednesday from the Treasury Department that would give the lenders $2.25 billion in exchange for forgiving Chrysler's $6.9 billion debt.


 * Obama expressed optimism for the company's future when it emerges from Chapter 11, calling bankruptcy a "quick" and "efficient" step on its path to "survival."
 * "The necessary steps have been taken to give one of America's most storied automakers, Chrysler, a new lease on life," Obama said.


 * Chrysler filed for bankruptcy protection Thursday afternoon in New York, a move President Obama said would give the company a "new lease on life."

// Bailouts // Ford Videos On Bailouts[| http://www.colbertnation.com/the-colbert-report-videos/213441/december-08-2008/the-word---season-of-giving] On Bankruptcy []
 * Ford turned down a $750 million government loan because executives did not want to adhere to limits on executive pay that would come with the money, a government official said.
 * The $750 million in aid would have been on top of the $1.5 billion it already has received. Ford received a $1.5 billion loan from the bank bailout program in January and said it would use the money to provide low-rate financing to more car buyers.
 * The government also restricted executive pay for federal bailout recipients at that time, but the restrictions have gotten tougher since then.

Bankruptcy And Bailout []

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