This article first appeared at The McAlvany Intelligence Advisor on Friday, October 3, 2014:
All Franklin Templeton Investments wanted was a fair shake. All CalPERS wanted is what it already has: exemption from bankruptcy laws. As attorneys for CalPERS – the California Public Employees Retirement System – tried to defend the country’s largest pension plan from contentions that it was getting off scot-free in the Stockton bankruptcy reorganization plan while other creditors were getting hammered, they sounded rather silly.
They claimed that a combination of state laws and statutes dating back into history protected the $300 billion that CalPERS manages from sharing the pain with other creditors in bankruptcy proceedings. They referred to something called