Saturday, April 11, 2009
Lawyers May Exploit GM Bankruptcy
If GM is forced into bankruptcy, Weil Gotshal & Manges LLP may charge 230 million for its legal services. They already charged $209 million advising Lehman Bros. in its bankruptcy. (DFP April 8) The greedy vultures seem to grow fat regardless of others distress. With this kind of transaction costs, it is a wonder that our economy does as well as it does. It certainly contributes to the growing skewness in the nation's income distribution.