Constitutional Challenge to Dodd-Frank Grows Ranks

Sam Kazman, the general counsel for the Competitive Enterprise Institute, said the OLA sets up a situation for many states similar to the situation Indiana faced in the 2009 bailout of Chrysler. Indiana, whose pension funds held a stake in Chrysler, was treated differently from other creditors and ultimately lost $6 million when the company was restructured, Kazman said.

“I see the possibility of that being repeated here on a much broader scale,” he said.