It doesn't work that way. Chapter 11 is a temporary protection against creditors that allows companies and some individuals to reorganize themselves and if possible trade their way back to financial health. Creditors foot the bill not tax payers.
It was because the Fed did not want to place the burden on tax payers that Lehman Bros has hit the wall. This was not the case with Freddie Mac and Fanny Mae who both had Federal guarantees. In those cases, the tax payer will foot the bill.
Just call me Tigasin. That's what I'm talking about
It doesn't work that way. Chapter 11 is a temporary protection against creditors that allows companies and some individuals to reorganize themselves and if possible trade their way back to financial health. Creditors foot the bill not tax payers.
It was because the Fed did not want to place the burden on tax payers that Lehman Bros has hit the wall. This was not the case with Freddie Mac and Fanny Mae who both had Federal guarantees. In those cases, the tax payer will foot the bill.
Just call me Tigasin. That's what I'm talking about