Update: It looks like the judge has already rebuked Indiana, prompting the Indiana pension to say that they’ll never again invest in a company that’s received a federal bailout. Probably a smart idea. See more at Indianopolis Business Journal.
Original psot: There’s a last-minute curveball in the plan to move Chrysler through a speedy bankruptcy. The state of Indiana via its Indiana State Teachers Retirement Fund, Indiana State Police Pension Trust, and Indiana Major Movers Construction Fund says the plan is “illegal” and that it’s all about rewarding constituents designed to reward creditors the government “deems politically important.”
Zero Hedge caught the filing, which is embedded below.
There’s lots of interesting dynamics here. One is that Indiana (obviously) isn’t a hedge fund, and can’t be villified the same way. They’re representing cops, teachers and all that good stuff. Will the government throw it under the bus for being greedy? We’d like to see that. It’s also interesting that Indiana fits the profile of a croaking post-industrial, kind-of car state. Of course, it’s always been more conservative than its neighbours.
Anyway, we hope Indiana doesn’t plan on getting a bailout, a la California, anytime soon.