The Lenders Obama Decided to Blame

NY Times ^

[Chet 99]

Peter A. Weinberg and Joseph R. Perella are part of a band of Wall Street renegades — “a small group of speculators,” President Obama called them Thursday — who helped bankrupt Chrysler.

That, anyway, is the Washington line.

In fact, Mr. Weinberg and Mr. Perella, with sparkling Wall Street pedigrees, are the epitome of white-shoe investment bankers. And their boutique investment bank, a latecomer to Chrysler, played only a small role in the slow-motion wreck of the Detroit carmaker.

But now the two men, along with a handful of other financiers, are being blamed for precipitating the bankruptcy of an American icon. As Chrysler’s fate hung in the balance Wednesday night, this group refused to bend to the Obama administration and accept steep losses on their investments while more junior investors, including the United Automobile Workers union, were offered favorable terms.

In a rare flash of anger, the president scolded the group Thursday as Chrysler, its options exhausted, filed for bankruptcy protection. “I don’t stand with those who held out when everyone else is making sacrifices,” Mr. Obama said.

Chastened, and under intense pressure from the White House, the investment firm run by Mr. Weinberg and Mr. Perella, Perella Weinberg Partners, abruptly reversed course. In a terse statement issued shortly before 6 p.m. Thursday, Perella Weinberg Partners announced it would accept the government’s terms.

It was too late.

[Chet 99]

If 0bambi keeps this browbeating up, we’re going to see a lot of people follow John Galt’s lead...

[psjones]

A lot of these Wall Street guys supported obama, I wonder how they’re feeling now.

[bruinbirdman]

"Washington, these people contend, needed some political cover for the mess in Detroit — and Wall Street provided a handy scapegoat. A move is already afoot to tighten oversight of hedge funds and end certain tax benefits for private investments funds. The Chrysler bankruptcy, and Wall Street’s role in it, will make resisting those efforts more difficult."

Let's see just how tough a Fascist The Obammunist is.

yitbos

[SECURE AMERICA]

(Wednesday night, this group refused to bend to the Obama administration and accept steep losses on their investments while more junior investors, including the United Automobile Workers union, were offered favorable terms)

Thank God there are still a few Americans with a set of balls left in this Country....

[flowerplough]

Bammy sounds like pre-whore-exposure Eliot (Idiot) Spitzer, kicking ass and naming names. Wonder how long it’ll last.

[Recovering_Democrat]

As Chrysler’s fate hung in the balance Wednesday night, this group refused to bend to the Obama administration and accept steep losses on their investments while more junior investors, including the United Automobile Workers union, were offered favorable terms.

I'd like to buy these men a nice steak dinner!!

[xlib]

I expect the UAW will end up owning Chrysler. There are 2 possible upsides to this: They broke it, they should buy it. And, let’s see how well they run the company now that they won’t have management to blame for everything. Could get interesting.

[Recovering_Democrat]

Chastened, and under intense pressure from the White House, the investment firm run by Mr. Weinberg and Mr. Perella, Perella Weinberg Partners, abruptly reversed course. In a terse statement issued shortly before 6 p.m. Thursday, Perella Weinberg Partners announced it would accept the government’s terms.

Wait a minute. I might have to retract that statement. Il duce keeps pounding them, and they bend?!

[bruinbirdman]

"Il Duce keeps pounding them, and they bend?!"

yitbos

[Renkluaf]

In a rare flash of anger...

Da'bama's flashes of anger are anything but rare.

[RushLake]

I had the same thoughts, but the flaw in the logic is that the UAW is among a large group of unions that own Zer0 and the whores (aka congress). That means that they will run Chizzler with our money. There is absolutely no incentive to control quality, absenteeism, cost, or design innovations.

[livius]

The dissident creditors said they had a fiduciary responsibility to seek the best possible returns for their own investors — which, the group said, include teachers’ unions, pension funds and endowments.

These funds were absolutely correct in their position; they had a legitimate right and they also had the duty to exercise it. But what's law and business ethics when Bambi's involved?

The One must have his way. We're in big trouble, folks.

[livius]

Da'bama's flashes of anger are anything but rare.

The word "rare" caught my eye, too. He has been nothing but harsh and inflammatory with respect to certain groups or individuals (anyone who doesn't agree with him, basically) since he took office. I'm sick and tired of the chiding and shrill scolding, but wait till he moves on to seeking legal and financial retribution, which he will. Oh, that and inciting his mobs in the street, which he came perilously close to doing with AIG.

[yazoo]

“Da’bama’s flashes of anger are anything but rare. “

Only when his teleprompter reads “SHOW ANGER.”

[Leisler]

Yeah, but what of it? He can’t do anything.

Let’s see if the last branch of government folds now, the courts. If so, we’ll see the second Obama administration, and Hitler like employment projects and more Obama white Greek temple rallies.

[REPANDPROUDOFIT]

The only people that will buy a Chrysler product are UAW workers and retirees. Sadly, there are so many of them, that might keep them afloat!

[romborambo]

I keep wondering. What happens when it’s time for the UAW to negotiate the union contract with a UAW dominated board of directors?