Wednesday, June 15, 2016

Au contraire Virginia, Congress can evoke bailouts during any financial crisis

In the aftermath of a negative public reaction to the bailing out of banks with taxpayer money following the 2008 Credit Crisis, Congress passed a law in which future crises in the financial system would be settled using the bank’s own customer accounts in what would become known as a bail-in procedure.
Yet on June 13, the possibility of a taxpayer bailout of a financial institution or sovereign government came back to the forefront as the Supreme Court ruled today that the territory of Puerto Rico does not have the authority to default on their debts, and only Congress has the power to legislate bailouts to aid or satisfy the obligations.
BAILOUT

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