Barry Adler, Bernard Petrie Professor of Law and Business, gave testimony before the Congressional Oversight Panel's hearing on assistance to the automobile industry under the Troubled Asset Relief Program (TARP). During his July 27 appearance, Adler criticized the government's role in the Chrysler and General Motors cases as well as the judicial determination that the process was legitimate. He argued that although government largesse in these cases may have been sufficient to pay each creditor its due, the manner in which the government quieted dissent created a precedent that could lead to violations of contractual rights among creditors in future cases. The result, he said, could be an increased cost of capital to corporate borrowers generally.
Posted on September 21, 2009