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...other large institutions, which are owed some $27.5 billion and by law are first in line to get paid back. It's fairly clear the Administration wants to make bondholders eat huge losses - or make them try their luck in bankruptcy court. "No bankruptcy judge is going to rule against GM and its plan. Not for labor, not for bondholders, that's for sure," says Lynn LoPucki, a bankruptcy expert at the UCLA School...

Author: /time Magazine | Title: Can Detroit Be Retooled — Before It's Too Late? | 4/2/2009 | See Source »

...unclear how the payments AIG made to other financial firms could be clawed back. Unlike stocks, CDS contracts don't trade on an exchange. And trading partners can unwind those contracts at any prices they like. What's more, a rule change in late February, to which AIG voluntarily agreed, gives the insurer's trading partners more leeway to name their terms in the cases of bond defaults that trigger CDS payments...

Author: /time Magazine | Title: Have AIG's Trading Partners Profited from Its Distress? | 4/2/2009 | See Source »

...Washington as to Ramallah, the seat of the Palestinian Authority. Netanyahu, who leads a sprawling coalition of right-wing and religious parties that is tempered by the center-left Labor Party, vowed to improve economic, security and political ties with Israel's Arab neighbors. "We do not want to rule the Palestinians," he said. But nowhere in his speech did he mention the two-state solution championed by Washington. (See pictures of 60 years of Israel...

Author: /time Magazine | Title: Israel's New Leader: Can the U.S. Work with Netanyahu? | 4/1/2009 | See Source »

...where does this rule about not touching the Queen come from? The sovereigns of England and France at some point in their nations' long histories claimed a divine right to rule, a right often amplified by titles bestowed by the Pope in Rome. (The Queen, in fact, still has the title Defender of the Faith, an honor given to Henry VIII before he broke with the Catholic Church and established the Church of England.) That touch of holiness once gave the occupant of the throne the supposed ability to cure certain diseases - most famously, scrofula, a terrible skin ailment that...

Author: /time Magazine | Title: The Queen and Mrs. Obama: A Breach in Protocol | 4/1/2009 | See Source »

...current political firestorm started as Varun was preparing to make his political debut in India's general elections, which are now less than three weeks away. The young man seemed to be consciously raising one of the most controversial episodes in modern India's history: Indira Gandhi's Emergency Rule from 1975-1977, when she - with Sanjay as her chief advisor - ran the country on authoritarian lines, ruling by decree. One of those edicts led to forced sterilization to deal with India's then huge population growth rate. Varun Gandhi allegedly referred to it in his virulent rallies...

Author: /time Magazine | Title: India's Dynastic Feud: A Gandhi Who Hates Muslims | 3/31/2009 | See Source »

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