Posted on 05/02/2009 3:58:06 PM PDT by fiodora
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 would use the White House press corps to destroy its reputation.
The White House said the story was false.
"The charge is completely untrue," said White House deputy press secretary Bill Burton, "and there's obviously no evidence to suggest that this happened in any way."
Thomas Lauria, Global Practice Head of the Financial Restructuring and Insolvency Group at White & Case, told ABC News that Rattner suggested to an official of the boutique investment bank Perella Weinberg Partners that officials of the Obama White House would embarrass the firm for opposing the Obama administration plan, which President Obama announced Thursday, and which requires creditors to accept roughly 29 cents on the dollar for an estimated $6.8 billion owed by Chrysler.
Lauria first told the story, without naming Rattner, to Frank Beckmann on Detroit's WJR-AM radio.
Perella Weinberg Partners, Lauria said, "was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House press corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence."
Perella Weinberg Partners, which owned Chrysler debt through its Xerion Fund, was one of Lauria's clients in this bankruptcy, but no longer is. Before the Thursday deadline, Joseph Perella and Peter Weinberg tried to join the larger creditors -- JP Morgan Chase, Citigroup, Morgan Stanley, and Goldman Sachs -- who are owed roughly 70% of Chrysler's debt and had already agreed to participate with the administration's plan.
All four financial institutions are recipients of up to $100 billion in federal government bailout funds, though the Obama administration insists the matters were kept completely separate.
Officials of Perella Weinberg Partners could not be reached for comment.
Lauria said his clients "are mainly fiduciaries for pension plans, college endowments, retirement plans and credit unions who invested in low yield supposedly very secure first lien debt" with Chrysler.
President Obama singled out Lauria's clients for criticism when he announced the Chrysler plan on Thursday.
"While many stakeholders made sacrifices and worked constructively, I have to tell you some did not," the president said. "In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout. They were hoping that everybody else would make sacrifices, and they would have to make none."
Lauria said the president's assertion that his clients weren't willing to make any sacrifice is false. The clients were willing to take 50 cents on the dollar from Chrysler for their debt, he said.
President Obama also said of Lauria's clients, "I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers, and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars. I don't stand with those who held out when everybody else is making sacrifices."
"He stands my clients up as basically the reason Chrysler is going into bankruptcy," Lauria said. "He wrongly says they're not willing to make any sacrifice. And then he says he does not stand with us."
Lauria said the president saying he doesn't stand with his clients "kind of sounds like 'You're fair game.' In whatever sense. People are scared. They have gotten death treats. Some have been told people are going to come to their houses. God forbid if some nut did something, I'm just wondering how the president would feel."
The Miami area-based attorney describes himself as an independent, and says after waiting in line for six hours last November he ended up not voting in the presidential election. He donated $10,000 to the Democratic Senatorial Campaign Committee in 2008 and $1,000 to then-Sen. Hillary Clinton, D-NY, in 2006.
-- jpt
Tapper- the best in the mainstream media
The ugly face of the new Liberal dictatorship. Sick NBC news on anyone who disagrees with the Liberals messiah.
Same Ratner as Ellen “I want more dead troops” Ratner and the Mahattan rela estate magnet Rather?
What’s with rich commies?
Nothing but thugs and lying dogs in the White House now. Even the total incompetent Jimmy Carter had some honest people around him.
0 says: “that’s the ABC that I did not know...”
next april, i’m going to send 29 cents on the dollar amount due on my taxes.
this is insane -
"The charge is completely untrue," said White House deputy press secretary Bill Burton,
"and there's obviously no evidence to suggest that this happened in any way."
Who to believe?
I used to bust on Tapper a lot. He seems to be onto something lately.
It very well may be that he’s realized that if he covers the news the way people believe reporters cover the news, looking to the scoop, looking to be first, looking of a story rather than a cocktail party invite, he’ll be in demand.
Is is the first to break a lot lately, which having dealth with reporters and editors is a big surprise.
You call up and put a “scoop” in their lap and they say, “But no one else has covered it yet.”
The guy on the far right, is he carrying a chicken?
Let me see, who to believe.
The O administration or anyone else, anyone at all.
Sorry, I wouldn’t trust the O administration to tell the truth under any circumstances.
The White House said the story was false.
Sure.. Of course we believe the White House.
I mean no one in the Obama Administration would lie to us..
BWAAAaaaaaHAAAAhahahahahahahahahahahahahah........
Listen to Frank Beckmann on the web, they guy is good, he is on a role getting stories 1st, quite the old fashion gumshoe.
It is too bad the Detriot News and the Free Press are banned here.
Daniel Howes is a national treasure with his take on business and the auto industry and no one knows who the guy is...
“The Miami area-based attorney describes himself as an independent, and says after waiting in line for six hours last November he ended up not voting in the presidential election. He donated $10,000 to the Democratic Senatorial Campaign Committee in 2008 and $1,000 to then-Sen. Hillary Clinton, D-NY, in 2006.”
I hoped he learned his lesson. Some times it’s a tough way to learn.
This sordid saga is but ONE MORE reason this totally corrupt and incompetent, agenda-driven Marxist must be removed from the Presidency of our nation — for the sheer survival of our Republic.
And Fascism comes to America
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