At the Daily Caller, constitutional lawyer Ilya Shapiro runs down President Obama’s top-10 constitutional violations. Of the 10, many are violations that could be based on a misunderstanding or legitimate disagreement on the Obama team’s part about what is constitutional. But this one is inexcusable:
4. The Chrysler bailout
Building on the Bush administration’s illegal use of TARP funds to bail out the auto industry, the Obama administration bullied Chrysler’s secured creditors — who were entitled to “absolute priority” — into accepting 30 cents on the dollar, while junior creditors such as labor unions received much more. This subversion of creditor rights violates not just bankruptcy law but also the Constitution’s Takings and Due Process Clauses. This blatant crony capitalism — government-directed industrial policy to help political insiders — discourages investors and generally undermines confidence in American rule of law.
The Chrysler bailout was more a violation of the rule of law than the Constitution, which makes it the worst offense, in my book, of ones Shapiro lists.
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