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
Obviously, this communist fruitcake in the White House doesn't understand the capital markets.
Obama’s statements support the accusation — very well.
Thuggish Chicago politics alive and well in D.C.
Like that’s going to make any difference.....
O’s spokesman is Robert “Beltway Bob” Gibbs, so this guy would be Beltway Bill! :-)
WHAT A BUNCH OF LIARS.
Will wonders never cease.
That's whatcha call "Damning with faint praise..."
heard this first last Friday on Mark LEVIN’S RADIO PROGRAM....
He did an interview about this!
gO listen to his pod cast
Other than that statement the President just made to the press, of course..
HOW TO BE A PRESIDENTIAL ADVISOR, MILLIONAIRE, A CONGRESSMAN, AND A COS, EVEN THOUGH YOU WERE NOT EVEN VOTED "MOST LIKELY TO SUCCEED."
1998 While official Washington was in the throes of the Monica Lewinsky scandal, Rahm Emanuel, a senior political aide to Pres Bill Clinton, ventured out to an elegant restaurant in Dupont Circle for something of a job interview, The New York Times’s Michael Luo writes.
John Simpson, who ran the Chicago office of the investment banking boutique Wasserstein Perella & Company, had flown to Washington to meet with Mr. Emanuel at the behest of Mr. Simpson’s boss, Bruce Wasserstein, a major Democratic donor and renowned Wall Street dealmaker who had gotten to know Mr. Emanuel. “I had this idea that this could work and that it had upside,” Mr. Wasserstein, now chairman and chief executive of Lazard, the investment bank, told The Times. “It worked out better than I could have hoped.” And better than Mr. Emanuel could have imagined as well.
Over the course of a three-hour-plus dinner, Mr. Simpson and Mr. Emanuel discussed how they might work together. Shortly afterward, Mr. Emanuel accepted an offer, nudging him down what has by now become a well-trodden gilded path out of politics and into the lucrative world of business.
1998 Rahm "The Perfect" resigned his position as an advisor to Bill Clinton, to become a Wall Street investment banker with Wasserstein Perella, (now Dresdner Kleinwort), where he worked until 2002.
1999 Just like that (snaps fingers)----in 1999, Rahm became managing director at their Chicago office. According to Congressional disclosures, Emanuel made $16.2 million in his 2 1/2 year stint as a Wasserstein Perella banker AND he probably paid all his taxes.
Amazingly, Rahm "The Perfect" became a multi-millioniare overnight----and he wasn't even voted "Most Likely To Succeed" (sniffle).
At Wasserstein Perella, Rahm worked on eight deals, including the acquisition by Commonwealth Edison of Peco Energy and the purchase by GTCR Golder Rauner of the SecurityLink home security unit from SBC.
2002 Rahm "The Perfect" then ran for Congress (successfully, OF COURSE). Luckily (/snic) members of the securities and investment industry became Rahm's biggest backers, donating more than $1.5M up to 2002, according to the Center for Responsive Politics.
2006 Rahm also leaned heavily upon the financial industry as 2006 Dem Congressional Campaign Committee Chair. Financial industry donors contributed more than $5.8M to the Dem committee (behind only retirees).
===========================================
ADDENDUM
January 2007 USA Today reported on Emanuel and his wife’s tax-exempt "foundation" (operated out of their Chicago residence). The tax-exempt Rahm Emanuel and Amy Rule Charitable Trust was formed in 2002, when the Chicagoan was first elected to Congress. Rahm and his wife, Amy Rule, are its only donors. They do not pay real estate taxes b/c their residence is the tax-exempt foundation's office.
======================================
As Joe Scarborough said (on Morning Joe) when he was lambasted for slurring Emanuel----"Sorry, I meant to use the F-word."
ARBESS, DANIEL J
NEW YORK,NY 10022 XERION CAPITAL PARTNERS LLC/MANAGIN 12/15/05 $1,000 Emanuel, Rahm (D)
LOL!
He probably has hopes for choking it later...
Boy Wonder Rahm made $18M overnight on Wall Street while Madoff was ripping off $63B.
You have to wonder what Rahm knew about Madoff while toiling in the cozy canyons of Wall Street....where all the ripoff artists knew each other.
Golly, I just hope Rahm paid all his taxes on the millions he was pocketing.....and the millions he was wire-transferring offshore (/snic).
Gov Richardson-pay to play scandal (withdraws)
Geithner-Tax cheat (confirmed)
Daschle-Tax cheat (withdraws)
Killefer-Tax cheat (withdraws)
Solis (husband)-Tax Cheat (confirmed)
Sen Burris lied about "pay to play" contacts
VP Biden's daughter in cocaine bust
Rahn Emanuel (too numerous to mention)
Obama prez campaign accepted AIG donations
House Speaker Nancy Pelosi (being there)
Cong Barney Frank, Freddie Mac scandals
Sen Chris Dodd, sweetheart deals with Countrywide
No. 2 at HUD Ron Sims (blatant violations of Public Records Act as Seattle area County exec)
Auto rescuer appointee Steven Rattner (massive pay-to-play NY pension scandal)
Other Dem Scandals:
Rangel-Tax cheat (under investigation)
Franken-Tax cheat (in US Senate recount)
VP candidate John Edwards under scrutiny for love child payoff w/ campaign funds
Governor Blagojevich-pay to play scandal (impeached)
Baltimore Mayor Dixon- indicted on perjury, theft charges
Racine Mayor Becker-arrested for child porn & soliciting minors
Hartford Mayor Perez- arrested for bribery
Birmingham Mayor Langford- arrested on federal charges
Former Detroit Mayor Kwame Kilpatrick-served 99 days jailtime
Portland Mayor Adams- admitted he had gay sex with teen intern
Chicago Alderwoman Troutman-plead guilty to tax fraud and mail fraud
Monica Conyers John Coyner’s wife, Detroit City Council President implicated in Detroit bribery case
Tim Mahoney (D-FL) - Offered $121,000 payoff and $50,000 a year job for two years to quiet former mistress/staffer
Rep William J. Jefferson (D-LA) tried on 6 counts including bribery (hid $90,000 cash in freezer)
NY Gov Spitzer - fed's wiretaps out involvement in prostitution ring.
US Rep. Carnahan (D-MO) lien filed on home for $17,364 unpaid roofer bill
State Sen Dianne Wilkerson (D-MA) resigned; arrested on federal bribery charges (stuffed bribes in bra)
State Sen J. James Marzilli(D-MA) indicted for accosting four women (resigned)
Rep Jan Schakowsky (Dem/Socialist--ILL ) husband’s bank fraud
OK, start an investigation. Take depositions. Put people under oath. Make their statements admissible evidence. Then let these douchebags try the "no evidence" dodge.
Tapper is apparently the only one in the press corp who has taken off his rose colored glasses.
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