Bankrupt States

Gerard Magliocca

Gerard N. Magliocca is the Samuel R. Rosen Professor at the Indiana University Robert H. McKinney School of Law. Professor Magliocca is the author of three books and over twenty articles on constitutional law and intellectual property. He received his undergraduate degree from Stanford, his law degree from Yale, and joined the faculty after two years as an attorney at Covington and Burling and one year as a law clerk for Judge Guido Calabresi on the United States Court of Appeals for the Second Circuit. Professor Magliocca has received the Best New Professor Award and the Black Cane (Most Outstanding Professor) from the student body, and in 2008 held the Fulbright-Dow Distinguished Research Chair of the Roosevelt Study Center in Middelburg, The Netherlands. He was elected to the American Law Institute (ALI) in 2013.

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5 Responses

  1. Joe Miller says:

    Wouldn’t either the Commerce Clause or the Bankruptcy Clause justify a receivership statute? (Especially after Raich and Comstock?
    As for the 10th Amendment question, would the anti-commandeering principle from New York / Printz prevent responding to one state’s collapse if nonresponse would threaten other states?

  2. Logan Roise says:

    Now this is an interesting post (not that the VP one wasn’t). I would assume the 10th Amendment would technially protect a State’s right to default but my guess is that the State & the federal government would come to an agreement before that were to happen. Something along the lines of the EU bailout in Greece. State X would ask the federal government for emergency help and the federal government would have to help. If the federal government didn’t step in, there would most likely be damage to the Dollar, credit ratings for individual states would tank (thus cost of borrowing would go up), etc. Eventually this would spread to county and municiple governments.

    Here’s to hoping we never have to find out the answer to this constitutional question.

  3. Rhadamanthus says:

    Could Congress deem that a State “lacked a republican form of government” if the State government was completely in thrall to public-employee unions, who had persuaded the politicians in their pockets to sign sweetheart contracts with insanely generous pension commitments which they (unions) claimed were insulated from revision or repudiation by the Contracts Clause (Art. I, Sec. 10, Cl. 1)?

  4. Bruce Boyden says:

    I’d be willing to place a bet that Bilski will be reargued. Not at even odds, mind you, but I think it’ll beat the spread.

  5. Gerard Magliocca says:

    Wow, that would be a nightmare. Though I suppose it would increase the odds that my article would get cited.