[Fast Moving Angel]

Exactly. Someone please explain to me how the US Treasury Dept. has standing to file a bankruptcy petition on behalf of a private corporation (assuming that it isn't an involuntary case).

I suppose, though, that if the government has standing to oust the president of a private corporation, that it can throw a private corporation into bankruptcy.

[Pearls Before Swine]

Someone please explain to me how the US Treasury Dept. has standing to file a bankruptcy petition on behalf of a private corporation..

I don't know the exact mechanism, but they are a super-senior lender, and any lender who is defaulted can initiate the process. I think that Treasury may be skipping a couple of steps, though.

[pierrem15]

Technically, I wonder if Geithner & Obama aren't guilty of extortion for the way GM's former CEO was ousted.

If they made quid pro quo threats against the company to exercise authority they don't legally have, isn't that abuse of authority & exortion?