Via America’s Lawyer: Joe Biden is enlisting the help of certain republicans in his campaign to unseat President Trump. Mike Papantonio & Farron Cousins discuss. Then, RT Correspondent Brigida Santos joins Mike Papantonio to explain Chapter 7 and Chapter 11 bankruptcies, as courts across the country are preparing for a tidal wave of filings as a result of Coronavirus.
*This transcript was generated by a third-party transcription software company, so please excuse any typos.
Mike Papantonio: Joe Biden thinks that he can assemble a team of Republicans to help take down Trump. There’s something bigger at play with this team of rivals. Great story. I, it’s a great story. Take it from there. Okay, let’s take it from there.
Farron Cousins: Well we’ve had reports for months at this point that Joe Biden’s meeting with Republicans and he even at one point jokingly, maybe jokingly, said he’d consider a Republican running mate. But what you have right now is you have a bunch of these so-called never Trump Republicans that have Biden’s ear. These are prominent people. You got your Bill Kristol’s, your Steve Schmidt’s, all of these big time Republican players who found themselves without a home after Trump took over because he kicked, basically kicked them out. And so now they’re going to Biden and saying, well hey, why don’t we be Republicans for Biden? Why don’t we help you? But it’s, it’s not just that they hate Trump. What this team of rivals is is let’s make sure nothing changes. Things are good for us right now. They’re good for Democrats, they’re good for Republicans, they’re good for corporations. We got to keep it the way it is without helping anybody, really.
Mike Papantonio: Here’s, and here’s why. If the Democrats don’t do something very soon, first thing, get rid of this, this character.
Farron Cousins: Yeah.
Mike Papantonio: Get rid of him. Find a candidate that doesn’t bring his baggage. Okay. Second thing that you do is you change your, you change your message. Like we just talked about the messages that they’re, they think are working. The hate, the counting on media, counting celebrity slosh. It doesn’t work. You know the idea that Trump caused the coronavirus, it doesn’t work. 45% approval rating today.
Farron Cousins: People want to hear issues, not just Trump is bad.
Mike Papantonio: They want to hear, they want hear, they want to hear issues. That’s exactly right. So as this thing goes forward, here’s, here’s where this thing lands with this whole Biden Republican love affair. This has been going on since Bill Clinton.
Farron Cousins: Right.
Mike Papantonio: Bill Clinton is the first person that changed the face. I mean, really changed the face of the democratic party and he said, what we have to do is we have to embrace wall street. We have to embrace the US chamber of commerce. We have to embrace all of these entities that take away the rights of consumers. They pollute. They make products that kill people. That, you know, that’s wall street. They, they take pension money from mom and pop. Those are our people now. Those are the, that’s where Democrat, establishment Democrat, run by a guy like Biden.
Farron Cousins: Well, he was involved in it. He was in office.
Mike Papantonio: He was part of all that. That’s exactly right. So all of a sudden we we’re, we’re now at the point to where, here’s where I think it lands. I think it was a wonderful article. I think you’ve said this, you’ve written about this in trial lawyer magazine, and it is that when people find themselves in a place where they’re comfortable, okay, and they have two bad choices, real bad choices, they’re going to go, they’re going to stay the same. It’s the choice is stay where you are.
Farron Cousins: Yeah.
Mike Papantonio: What’s your take?
Farron Cousins: Exactly. So many people right now, believe it or not, in spite of the headlines, they’re no different than they were four years ago or even eight years beyond that. Of course, the coronavirus obviously has changed things, but this is almost a one off. Okay. When you take that out of the equation, which maybe we can or can’t do that before November, but a lot of people say, well, my income is basically the same. It hasn’t gone up, but it hasn’t gone down. Yeah, I didn’t get that tax cut, but my taxes didn’t go up. Yeah, I can’t pay my medical bills, but I couldn’t pay my medical bills under Obama.
Mike Papantonio: Right. So what do they do? They, it’s status quo.
Farron Cousins: Yeah, you stay the course and that’s what Bush argued in ’04 against Kerry.
Mike Papantonio: That’s exactly right.
Farron Cousins: Because it was the same thing. They said, we’re midstream. Why change courses now?
Mike Papantonio: Why change? Yeah, don’t do it. Don’t do it. And Kerry, Kerry should have beat, should have beat, I mean, if you looked at the numbers, he should’ve beat Bush. It’s the same situation here.
Mike Papantonio: America’s courts are expecting the largest surge ever in corporate and individual bankruptcies due to covid 19. Large public companies are gonna likely survive, but small businesses and individuals, well, they’re not going to fair all that well. RT’s Brigida Santos joins me to talk about that. Brigida, first of all, for those who aren’t familiar with how the process works in bankruptcy, take a quick look at what’s available to some of these companies that want to call on the bankruptcy legislation.
Brigida Santos: Sure. Look, bankruptcy is a court proceeding in which a judge examines the assets and liabilities of a company or individual that can’t pay their bills to determine whether those debts will be forgiven, restructured, or even reduced. Now, the process is supposed to give people and failing businesses an opportunity at a fresh start. However, a bankruptcy does remain on a credit report for seven to 10 years, so that certainly will have a negative effect, but still it’s supposed to be a safety net, so creditors don’t continue garnishing debtors wages or filing lawsuits and leans against them. Historically, the courts see a rise in these bankruptcy cases. Whenever there’s a rise in unemployment. Now in the past six weeks we’ve seen at least 30 million people in the United States file for unemployment due to the coronavirus recession. So those bankruptcy cases are likely going to hit the courts and start rising there accordingly.
Mike Papantonio: And what you see is you see corporate raiders come in many times. We were talking earlier about the Eastern Airlines with Frank Lorenzo when he came in, he sold off assets, he got rid of pension programs. He, he, he got rid of the people that were, you know, big salary people at the top. He completely changed the face of Eastern Airlines to where it just, it went out of business. But he was a corporate raider and I’m wondering, you’ve got Neiman Marcus, you’ve got JC Penney, you’ve got J. Crew, you have Krystal hamburgers. I mean, you’ve got McClatchy news, you’ve got Pier One Imports. The list is massive of these major companies that are, they look to me like they’re gonna take that route. They’re probably going to use a chapter 7. You’re going to see corporate raiders come in and take advantage of all this. And what I’m wondering is can the courts, can they even handle the flood of bankruptcy cases that they’re expecting?
Brigida Santos: You know, when these smaller companies file under chapter 7 they’re going to have a harder time than these bigger companies filing under chapter 11 because under chapter 7 a company has to stop all their operations. They go completely out of business and a court appointed trustee liquidates that company’s assets to pay off those debts. Now this happens and all employees of course, lose their jobs. We’re going to see a lot of chapter 7 bankruptcies from small local businesses including smaller retailers, restaurants, things like that. Now when it comes to these bigger companies, they often have a larger liquidation value that’s actually less than the revenue potential. So that’s why they file under chapter 11 of the US bankruptcy code, which allows the company to continue operating while their debts and assets are restructured, as you were talking about earlier, so that the company can actually eventually pay their creditors back and hopefully even become profitable again.
Now prior to the pandemic, many airlines, including Delta, United, American, et cetera, they were actually able to get out of bankruptcy in under four years. They’re in hot water now again, so we’ll have to see how that plays out, but the courts are expecting a major backlog of cases which could have an extremely negative impact on the already struggling economy and once a person files for bankruptcy, the process typically takes about six months or more to complete. It can take even longer now. So experts are urging Congress to double the number of bankruptcy judges and support personnel. But we really need a better solution because after bankruptcy, it’s really hard for individuals and businesses to get new lines of credit or loans to start over. We’re only seeing the beginning of the economic fallout from the pandemic, but these big corporations definitely have a leg up here.
Mike Papantonio: Brigida, thank you for joining me. This story has just started. As I say, there’s going to be a flood of major companies that are looking for chapter 11 counter protection and it’s going to be a, it’s going to be a way for them to reorganize in ways that are not going to be good for workers, not going to be good for, for, for the company in the long run because they’re going to be made really into a target for corporate raiders. That’s the way I see this happening. We’ve seen it before as we’ve, as we’ve faced issues like this, emergency issues throughout history. And so this is my prediction. It’s just going to repeat itself here. Thank you for joining me. Okay.
Brigida Santos: Thanks Mike.