Posted on 04/17/2009 10:42:40 PM PDT by genghis
Rescued Banks Balk at Chrysler Deal Creditors Pushed To Surrender Claims Of Billions
Friday, April 17, 2009
At a meeting with executives from four of the nation's largest banks earlier this month, the chief of the government's auto task force, Steven Rattner, delivered a message that shocked some in the room.
To save Chrysler, he told them, the four banks and several other financial firms would have to surrender their claims to most of the $7 billion the automaker owed them. And what would the banks get in return for this sacrifice? Nothing.
"People's jaws just dropped," said a person familiar with the discussions.
The banks -- J.P. Morgan Chase, Citigroup, Morgan Stanley and Goldman Sachs -- have all since balked at the government's proposal. This week, they
(Excerpt) Read more at washingtonpost.com ...
In a slightly different direction on this topic - for those who saw Sam Zell’s admission that his takeover of the Tribune Corp. was a mistake - what do you think Nardelli is saying each day when he gets up? I have no sympathy for the guy, but running Chrysler has to be like Groundhog Day - every day, nothing but failure, then repeat.
Did these same banks take billions from US taxpayers who get nothing in return?
When you take gifts from organized crime, you eventually have to pay up.
Don't know if I am reading things right or not but the Goverment is basically telling them where some of the money should go.
Guess when you hand over 100's of Billions without accountability or oversight(and against the Tax payers wishes) in one big hurry then it's is a problem.
BOY confusing is a understatement.
All the banks that took money, are paying 5% on the loan and it is a loan.
That is why more than a few want to pay it back ASAP.
Further, some banks were coerced into taking the money. The reasoning was, that if all banks did not take some, then there might be a run on the banks that took a lot.
The feds and the banks both wanted to avoid bank runs which can kill even a heathy bank.
Chase didn’t get a penny.
Give it up. Communists are in power. The result can be predicted. Bet on it.
Ouch. That’s going to hurt.
The banks got a loan, and some of them were pushed to take the money even if they didn’t need them because the government did not want it to be obvious as to which banks were having problems. It makes sense to have done it that way, look at what happened to Indymac once Schumer put out his report about the bank, it then became a self fulfilling prophecy.
Of course, Team Zero has yet to demand really serious concessions from the UAW. The parasite is killing the host and the Team Zero rescue strategy is focused on saving the parasite.
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