The 60 Second Update with

Congresswoman
Michele Bachmann

4. Why has the State of Indiana filed a lawsuit seeking to stop Fiat from buying Chrysler?

Indiana is protecting the rights and pension funds of their teachers and police officers; they hold secured debt worth more than $33 million and were supposed to be first in line to collect any paybacks in bankruptcy under long-held, established law.  But with this sale, basic American legal principles were turned upside down and repayment of the unsecured debts of the United Auto Workers union was put ahead of the secured debts of legitimate bondholders.  This essentially gave a bigger share of the pie to more junior, non-secured parties, who happen to be politically influential.

President Obama attempted to pressure these pension funds saying, “Everybody is going to have to give.” But the pension funds have a fiduciary duty to protect the teachers and police officers who have invested their life savings there.  The State of Indiana filed a lawsuit to ensure that these retired teachers and police officers were not robbed by the federal government. And I support their efforts 110%.

Question 5. To what extent are the unions to blame?