Rather than try and touch on the many specific areas where there are Constitutional questions this post will discuss the most recent violation which has occurred with the bankruptcy of the Chrysler Corporation. There is clearly a violation of the separation of powers in the Constitution as far as the Judicial Branch and the Executive Branch in the way that the bankruptcy has been handled.
Let me explain. When a company files for bankruptcy protection they are requesting that the court through legal channels provide protection from creditors as the company attempts to restructure under the bankruptcy protection. The courts also work with company in bankruptcy with the restructuring, providing legal decisions to better use company assets etc. in paying off debt and rebuilding the company so that it may once again become a viable profit making entity.
The bankruptcy of Chrysler has been handled by the task force that was appointed by Barack Obama. This task force at the behest of the President has through pressure being brought to bare forced stock holders to take 29 cents on the dollar in return for their investment while giving the UAW a much higher return and a 55% controlling interest in the corporation.
Additionally news came out that Chrysler had budgeted 134 million dollars for advertising while in bankruptcy and the task force cut that budget in half. Whether Chrysler spends 134 million or 67 million for advertising is not the point. The point is where in the Constitution does the Executive Branch have the authority to control anything that is under the jurisdiction of the Judicial Branch as is the case when a company is in bankruptcy ?
It is not the responsibility nor does the Obama administration have the Constitutional authority to negotiate, restructure, decide stock options and who and how much stock holder are payed for their investment, or decide budgetary matters with any company seeking or within the perimeters of bankruptcy protection because it is strictly a Judicial matter and as such is Constitutionally handled by the courts and not the White House.
Nowhere in the Constitution does it allow the Executive Branch any authority in Judicial matters except the Presidential authority to appoint judges to all levels of the Federal Court System. Beyond that authority the President, a Presidential task force nor any other entity within the Executive Branch are Constitutionally allowed to delve into Judicial matters.
The Executive Branch can like any citizen present a case before the courts but cannot assist in the control and structuring of a bankruptcy as the Obama administration is doing with the Chrysler situation. Every aspect of a bankruptcy is a Judicial matter working with the particular company seeking protection. Yet the Obama administration is clearly over stepping Constitutional authority and violating the separation of powers by controlling all aspects of the Chrysler bankruptcy.
Where is the out cry about this Constitutional violation ? The lock step love affair of the media with Obama has not even questioned this clear violation. The courts have not questioned the violation. Yet the violation is real and over stepping greatly the Constitutional bounds separating the powers of each Branch of the Federal Government.
How long will Constitutional outrages like this be allowed to continue and Obama’s complete and utter disregard for our Constitution finally be challenged and his violations be brought before the courts and the public for the legal scrutiny they demand? Or will everyone just sit back and allow Obama to control the courts in the same way that Hugo Chavez has taken control of the court system in Venezuela !
Ken Taylor http://theliberalslies.blogspot.com
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You seem to have conflated two issues
civil truth (Diary) Wednesday, May 13th at 10:35AM EST (link)The Obamas administation’s intimidation of creditor and attempt to strong arm a settlement through the courts in defiance of bankruptcy law does evidence violation of the separation of powers. The court needs to tell the administration to back off, but it’s not clear if the judge has done so.
As for the government interfering in Chrysler’s business decisions (such as advertising) – I don’t see where that involves treading on the court’s turf.
Rather it highlights how the government has used its loans and equity interest and control of banks to move in on Chrysler like mobsters and take over the company under threat of firing management, etc. (“nice office you’ve got there, sure would be a shame if you didn’t get to be there anymore”). Thuggery, yes – dictatorial behavior, yes – covert nationalization – yes. But I don’t see how this particular set of actions steps on the judiciary’s toes.
The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/
C_T, it is certainly somebody's toes!
penguin2 (Diary) Wednesday, May 13th at 10:46AM EST (link)I see your first point, but even if it is not the bankruptcy court’s bailiwick, when was the executive branch given powers from the Constitution to take over private business, nationalize banks, etc.? I thought dictators were not allowed per our Constitution. Didn’t F.D.R. run into Constitutional issues with his New Deal social/economic programs? Some were found to be unconstitutional and then I think he figured out that he needed to “stack” the Supreme Court.
I know you are probably right, but everything Obama and his henchmen are doing seems wrong and somewhere I keep hoping a backlash will come and stop this possibly irreversible takeover of our country.
Resistance to tyrants is obedience to God. – Benjamin Franklin
When Good stands up to Evil, Evil blinks. – Vassar Bushmills
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Ken Taylor (Diary) Wednesday, May 13th at 1:00PM EST (link)The cutting of the advertising budget was dictated by the Obama task force as part of the structure of the bankruptcy. Chrysler had budgeted 134 million as part of the bankruptcy and the task force cut that in half.
Terms and structure of any company in bankruptcy is a court matter and not to be handled by the Executive Branch.
Understand your point and agree
civil truth (Diary) Wednesday, May 13th at 3:09PM EST (link)This decision regarding advertising being under the jurisdicition of the bankruptcy court,the Obama task force is crossing the line here too.
The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/