Bankruptcy Knoxville

As a follow-up to the previous post, we all remember the AIG bailout and the subsequent bonuses paid to their top employees. You know, the same employees who helped facilitate this huge financial crisis? Well it was less publicized at the time that AIG also pressured the Fed to let them make their trading partners whole with TARP funds.

The Fed had the leverage to prevent this and chose not to do so – a troubling discovery. A new report outlines the role of the Fed in facilitating AIG’s poor behavior.

It’s been said that some companies are too big to fail. In other words, no matter what they do by way of causing economic distress, letting them fail would be far worse than keeping them afloat. It’s an interesting theory that was recently targeted by a panel of economists in Washington D.C.

They argue that protecting these companies from bankruptcy altogether is irresponsible. Some lawmakers acknowledge the unique circumstance of these huge companies and have proposed a special Chapter of the bankruptcy code to deal with them. It’s an interesting bankruptcy debate that needs to happen. Read about it here.

If you’re looking for solutions to your own financial woes, call the bankruptcy attorney Knoxville trusts to set up a free consultation.