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"Cheating" that any company company incorporated in North America would do. Legally, of course, please refer to bankruptcy law.

Context is everything and all that is said usually in this regard in North America is that at is good for the goose (banks, e.g. corporations) is good for the gander (the rest of us).

In Europe, the rules don't apply quite the same way.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Tue Aug 24th, 2010 at 06:50:53 PM EST
[ Parent ]
Wall Street Journal Sees Parallel Between Commercial and Individual "Strategic Default"" When Solvent Commercial Property Owners Quit Paying? « naked capitalism
I think we all know the answer to the question in the headline, courtesy F. Scott Fitzgerald, "The rich are different than you and me." And the fact that they have more money means their defaults are couched as pure business decisions. But mere homeowners, told to view their house as an investment, are now castigated if they act as any professional would and cut their losses.

The Wall Street Journal article on, ahem, voluntary commercial real estate defaults points out that some of the very biggest names are in the walk-away camp and through the article points out the similarities in decision process between commercial real estate strategic defaulters and their retail kin:

Like homeowners walking away from mortgaged houses that plummeted in value, some of the largest commercial-property owners are defaulting on debts and surrendering buildings worth less than their loans.

Companies such as Macerich Co., Vornado Realty Trust and Simon Property Group Inc. have recently stopped making mortgage payments to put pressure on lenders to restructure debts. In many cases they have walked away, sending keys to properties whose values had fallen far below the mortgage amounts, a process known as "jingle mail." These companies all have piles of cash to make the payments. They are simply opting to default because they believe it makes good business sense.



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Wed Aug 25th, 2010 at 06:21:37 AM EST
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