WHY CLEAR PROPERTY RIGHTS MATTER. The sale of Chrysler to Togliatti Fiat has gone through. Some Indiana pension funds raised objections that may have involved abrogation of the rights of secured creditors (brief legal analysis here, longer one here). It's not clear from this column whether the pension funds are raising the same objections some hedge funds raised to the repayment schedule approved by the Administration.

Here's a topic for future research: does the moral standing of a secured creditor matter? Put more bluntly, can the claim of a hedge fund that holds corporate bonds be treated differently from the claim of a pension fund that holds the same bonds? Further, does the wrangling over procedure to establish such different treatment exhaust the possible benefits to be obtained?

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