Sears Bankruptcy Engineered to Benefit Executives and Stiff Workers

The Real News Network has the video Sears Bankruptcy Engineered to Benefit Executives and Stiff Workers.

BILL BLACK: Oh, this is absolutely the norm. And again, strategic bankruptcies where you don’t necessarily have to go into bankruptcy, but you do so to screw the workers and benefit the executives, are extremely common among the wealthy. And that’s being done in this case, and Toys R Us is a good example. What kind of bonuses – remember, in 2005, Congress changes the law to say you’re only supposed to be able to get a bonus for really extraordinary efforts. Well, Toys R Us just died. It wasn’t brought back to life as some wonderful, efficient entity through brilliance of the management team under bankruptcy. So under the very logic of the 2005 Reform Act, they should have gotten zero in the way of bonuses. So you can see that’s yet another area where, in practice, the bankruptcy judges tend to be extremely generous to the senior management that have looted and destroyed the place, and extremely hostile to the workers. It’s an outrageous, utterly stacked system, and it’s getting worse, and it should be a major area where the House of Representatives, under the new majority, should be acting to reform the law.

If you don’t know this, then you probably don’t understand what we mean when we say the system is rigged for the wealthy.

If you call yourself a capitalist, is this the sort of capitalism you envision? Nancy Pelosi says that she is a capitalist, and that’s just the way it is. She didn’t add the “So there”. Joe Biden is also one of the great Democrats who tightened up the bankruptcy laws for the ordinary people in order to protect the credit card companies incorporated in his state. Is this why some people are rooting for Biden as a Presidential candidate in 2020? Are voters aware of what is going on? This is the kind of capitalism that the Clintons seem to prefer.

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