Andylusion
Platinum Member
Wrong. Equity holders typically are wiped out.We realize that. But he has done it four times. He is abusing the bankruptcy code to rip off investors. Once is ok. There are force majeure reasons to do that, so twice, while pushing it, can happen. But four times is deliberate fraudThis is correct. There is a big difference between an individual filing a ch. 7 bankruptcy and a corporation restructuring under a ch. 11.
Those ch 11 filings probably involved different companies. Also, equity holders usually get paid pretty well as administrative claimants.
So, basically, his bankruptcies mean that he fucked over lots of people just to get himself out of a financial mess. Four times. And this is someone who should be overseeing the US economy? No.
You do not know that, and neither do I. Maybe his company bankruptcies paid a substantial dividend to equity holders pursuant to the reorganization plan. Equity holders do not necessarily get fucked (though it admittedly happens a lot).
You also don't know if Trump had a choice in the matter. The creditors may have forced the bankruptcy.
Lot of ASSumptions being tossed around in here.