A leading bankruptcy attorney representing hedge funds and money managers told ABC News Saturday that Steve Rattner, the leader of the Obama administration's Auto Industry Task Force, threatened one of the firms, an investment bank, that if it continued to oppose the administration's Chrysler bankruptcy plan, the White House
Link
Now we know why he wants that Civilain National Security force that is just as powerful,just as strong and just as well funded as the miliatry.
Obamie must have gotten to him already:
ReplyDeleteNow, Tom Lauria is clamming up, refusing to stand by his earlier accusations against the White House. Neil Cavuto pressed him last night on Fox Business:
LAURIA: I have a former client in connection with this matter who is a client in connection with other matters who doesn’t appreciate all the attention that’s been brought to bear on that. So I have no further comment on that topic.
CAVUTO: Alright, well, this issue was raised by you. And now you’re not gonna talk about it?
LAURIA: I have no further comment. [...] I really don’t want to talk about this topic at this point. [...]
CAVUTO: You started out making a comment, and now you dropped it. It’s just weird, that’s all I’m saying.This morning on Fox News, host Megyn Kelly tried another approach. “Can I ask you this? Have you made public statements that are untrue?” Lauria would not even dispute that he is lying. Instead, he said, “The truth is gonna come out.”
Lauria was asked eight separate times in two appearances on Fox to explain his earlier comments. And eight separate times, he refused to stand by his story.
Can you spell intimidation?
ReplyDeleteOr did you fail to hear veiled threats Obamie issued?
I mean imagine. People who loaned a company money want to be paid back. What's next? A secured loan is secondary to the Union?? Wait! Obamie just did that!
Can you spell intimidation?I dunno, I spell crazy as "Appoint a Special Prosecutor based on what someone not a party to a conversation said about it."
ReplyDeleteOr did you fail to hear veiled threats Obamie issued?I rely on you to keep track of them, I'm not surprise you're not telling us that Obama's mustard choice yesterday was a sign that he was going to hand this country over to France.
People who loaned a company money want to be paid back. What's next? A secured loan is secondary to the Union?? Wait! Obamie just did that!Here's what a businessman had to say about it:
These investors together hold about $1 billion of Chrysler’s secured debt. The Treasury offered to pay all of Chrysler’s senior lenders $2.25 billion in cash if they forgave most of the company’s debts. Perella Weinberg and the others demanded more, arguing they would receive at least that much, and possibly more, under ordinary bankruptcy proceedings.
But this is no ordinary bankruptcy. JPMorgan Chase and other large banks involved in the negotiations are, to greater and lesser degrees, beholden to Washington. Many have received billions of taxpayer dollars, as well as other generous subsidies. For the banks, defying the administration was never a serious option, according to people close to the talks with lenders, who asked not to be identified because they had signed confidentiality agreements.
The other creditors, who sought to distinguish themselves from those who have received bailout money, believed they had a stronger hand. Many of them bought Chrysler debt for about 30 cents on the dollar, long after it became clear that the company was in trouble. Most of this debt is secured by Chrysler assets — factories, equipment, real estate and the like. The thinking was that in the worst case, these assets could be sold at a profit if Chrysler were liquidated.Emphasis added.
Now the layers can't be blamed for that perhaps, but the presumption Chryslers fixed assets would get a good return (even if one came in at 30 cents on the dollar) given one is facing a depression-level economic crisis, and the rest of the auto industry is on the brink. Never mind the very industry being on a Gov't equity lifeline. In such conditions, normal rules can be pretty much counted on as being out the window.But it is plain retarded to whinge on about the Gov't changing the rules when as a Vulture investor it's transparently obvious you were making a moral hazard play, that the Gov't wouldn't dare go nuclear.
Well, they did.
But it is plain retarded to whinge on about the Gov't changing the rules when as a Vulture investor it's transparently obvious you were making a moral hazard play, that the Gov't wouldn't dare go nuclear.
ReplyDeleteHuh?? What is a moral hazard play??
The investor bought what was supposedly secured debt and then the rules were changed and Obamie Chicagoed them. Works great until all the home lenders decide they must collect 50% down and say 20 points to give them some protection.
BTW - What's next? Sharia loans?