By Robert S. Siegel
Is there any truth to the charges that the President threatened lenders that didn’t agree to the government’s terms for Chrysler’s bankruptcy?
Mainstream media reported on stories circulating in the blogosphere, concluding the charges were false. But now Forbes and the Wall Street Journal have reported on the story, adding credibility.
Were lenders threatened, and if so, did the White House apply unlawful pressure or merely use the tools needed in this crisis? From the reports I have read this whole story appears to be more the result of a lot of tense, angry people dealing with huge financial loses. I have no doubt the meetings on this bankruptcy were ugly.
However, we know the President called the lenders out publicly. He did that when he announced Chrysler’s bankruptcy. When the President verbally attacked a group of investors for trying to protect their interests he knew he was playing dirty. Everything has a cost. Government can only give to one group by taking resources from someone else. President Obama took sides on this one then slapped his opponent’s faces for not willingly accepting more enormous losses than they thought justified.
“They were hoping that everybody else would make sacrifices, and they would have to make none,” the President charged. The group had proposed to take sixty cents on the dollar. That may not be enough of a loss, but it is a huge loss and something these mostly small players had a right and an obligation to try and limit. But the President picked sides, “I don’t stand with them,” he said, while announcing the bankruptcy.
The White House may not have done anything wrong in these alleged threats; in fact, I doubt they did. But the President took this fight to the gutter. Now he should call for an investigation or the blogosphere will investigate. This thing may not get out of the gutter unless the President lifts it out.
{ 7 comments }
I would file this one under the rest of the stories such as Obama being a secret Muslim born in Kenya. And Noriega is John McCain’s half-brother according to Panama birth certificates…
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abd7cTYxFovI
Lauria lost and sour grapes…..
a blogosphere investigation is simply writing about other blogs and adding your own twist.
I have to agree with gottalaugh. This one is just silly. Its the same as the “evidence” of threats from the public presented in court. It turns out that it was anonymous blog posters with names like “jerkhoff” that were used as evidence of danger.
While I’m sure Mr. Jerkhoff is a total badass and would have made good on his threats, I just dont see this one worth pursuing.
Well, let me tell you I’m with Obama on this. So are the vast majority of the American people. The investors are greedy. They should have made a deal. They thought they could hide behind anonymity while fighting what is effectively the interest of the American people. You are all just sour grapes. This whole episode has cost the American people and all other players more time and money. There are many other investors who took the deal available. These where just being rapacious. I wouldn’t mind if they got a lesser deal than the rest of the investors. Really, your article is cheap. Who is paying you for this ridiculous diatribe? And, let’s be very clear, the blogosphere is not the arbiter of truth. Indeed, it is often the gutter of which you speak. Just look at your comments.
Obama and the White House completely ignored all bankruptcy laws to do what they wanted. These “greedy investors” were secured lenders that, by bankruptcy law and legal precedent were due to be paid in full the debts chrysler owed them. By the way, these “greedy investors” could be your neighbors, or even your mother; they held money from common people, 401k’s, and other retirement plans. And, FYI, the lenders that agreed to be payed back much less were TARP lenders. TARP lenders received bailout money from the government already(they are not really in the position to protest against a government keeping their businesses afloat. So, for Paul Stewart and all you other Obama lovers, this article is very fair; in my opinion it is not strong enough considering the atrocities being commited in our legal system. When will all of you delusion f***ing Obama’s d*** suckers realize that you and him have no clue what the f*** you are doing. Yes, change is coming, but only because all of you are f***ing f***tards who think that Obama’s sh** is gold and that you and his crazy motherf***ing cult can do no wrong! I bet if Obama f***ing kills someone and sh**s on his face you guys will hail his f***ing wisdom and beg to suck his d***. Have a nice day
Bankruptcy is not a final death knell….although there are still issues, the airline industry is proof of that.
It will be interesting to see how the Obama administration pressures creditors on the GM situation. One statement that he made, which of course can be taken in a few different ways because it’s nuanced, is that Americans should buy American cars….I interpret that as protectionism (but that’s just me).
A topic close to my heart thanks. Like your blog design too.