BREAKING: USSC delays Chrysler asset sale!

CNBC Breaking News (live) ^ | 08 JUL 09 | dcbryan1

[DCBryan1]

Breaking on CNBC:

USSC delays Chyrsler asset sale!

Mourdock: USe of Tarp Funds in automotive industry was illegal

Obama admin had urged USSC NOT to keep chrysler deal on hold

[GVnana]

Obama gets bummed!

[GVnana]

LOL! Yeah, that’s the biggest joke of all.

[MIchaelTArchangel]

It is not guaranteed that the US Supreme Court will hear the case. Justice Ginsburg who is responsible for the federal courts in New York issued a one page order that stayed the actions of the courts in New York (putting the sale of Chrysler to Fiat) on hold pending further order by her or by the Court.

Four justices would have to agree to hear the case for the entire Court to hear arguments. I doubt Justice Ginsburg would have issued the order if she did not believe the case had merit. I suspect Justices Alito, Scalia, and Thomas also believe the case has merit so I believe the Court will very likely grant certiorari tomorrow or Wednesday and hear arguments soon.

Fiat may back out on Saturday as that company has only agreed to be purchase Chrysler if the sale occurs on or before June 12, 2009. My guess is if the Supreme Court issues a writ of certiorari and schedules arguments for Monday, June 15, Fiat will walk away from the deal rather than wait because the it is not in Fiat's best interest to have the Supreme Court looking at the legality of the deal brokered by Don Hussein 0bummer and Gelfin Geithner.

What I hope happens is that the Supreme Court issues the writ tomorrow and asks both sides to present oral arguments on Wednesday and strikes down both the deal and Porkulous on Thursday before Fiat is free to withdraw and make the case moot.

[CharacterCounts]

No way she gives it to the full court.

She is not the last word. If 4 justices want it, it goes to the full court unless 5 justices decline to take it. Even if she takes it up, 4 justices must still vote to grant cert.

[tobyhill]

Great News. Obama is trying to award the UAW despite their failures over bondholders.

[blam]

"Unlawfully rewards unsecured creditors = UAW "

This is outright theft by the Obamaites to reward their political allies, the unions, with investors money.

They ought to all go to jail for attempted theft.

[Girlene]

Did anyone watch the alphabet news? I watched Bret Baier and there was absolutely nothing about this on his newscast. Very disappointing.

No, but it's not surprising. This case has fallen under the radar for the MSM. I read a blog this weekend from a person in the courtroom on Friday. Standing room only. The primary lawyer was late to his own case because of all the security. It's an important case that the MSM would like to ignore. It's an important case about the rule of law in this country. I hope Ginsburh et al decide it is worth pursuing beyond the stay.

[Robert357]

I’m impressed Ginsberg didn’t side with the Obama administration. Just wow. It gives me hopes the separation of powers might not be completely dead.

Boy of Boy, this is going to be a summer of popcorn and TV watching!

I wonder how fast the Supreme Court will expedite this as the alternative is for Chrysler to be forced into liquidation. Will they do a record breaking Bush vs Gore review and decision or will we get an October decision.

If it is an October decision, then Chrysler is toast, and Obama and the Democratic Congress got a lot of problems.

I wonder what the politics were to get Ginzberg to do be point?

[1066AD]

Chrysler and the Rule of Law The Founders put the contracts clause in the Constitution for a reason.

WSJ 5/13/2009: The Obama administration's behavior in the Chrysler bankruptcy is a profound challenge to the rule of law. Secured creditors -- entitled to first priority payment under the "absolute priority rule" -- have been browbeaten by an American president into accepting only 30 cents on the dollar of their claims. Meanwhile, the United Auto Workers union, holding junior creditor claims, will get about 50 cents on the dollar.

[narses]

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Obama Says A Baby Is A Punishment

Obama: “If they make a mistake, I don’t want them punished with a baby.”

[Girlene]

A bit more from the lawyer, Thomas Lauria, who is challenging the Chrysler deal. From an interview with Susie Gharib, Bankruptcy Attorney Thomas Lauria Reviews The Chrysler/Fiat Case

.................."GHARIB: I'm fine, thank you. Let me begin by asking you that if you do make an argument before the Supreme Court, what's the case that you're going to make on behalf of your Indiana investors?

LAURIA: Well, there are really two issues. The first one is that the executive branch of the government has no statutory or constitutional authority to take over and run a car company as it's done with Chrysler. The second argument is that the scheme that the government put together with the company and some of the other stakeholders is really a sham transaction that was designed to upend the priority scheme under the bankruptcy code and to deprive my clients of their contractual rights.

GHARIB: So you're saying on the first point, you're saying that the government didn't even have a right to give those bailout funds to Chrysler. That's number one. Number two is, what's the take away money or restructuring part of the deal, right?

LAURIA: Correct.

GHARIB: All right. So then what's the end game here? What do you want to happen?

LAURIA: Well, we want to see Chrysler be reorganized in a way that complies with the law. I think it's actually pretty easy to do. Rather than try to characterize this as a liquidation of Chrysler for $2 billion which gets paid to the secured lenders and then giving the $20 billion going concern value of the company to junior creditors, what you should do is sell the assets for the full price, $22 billion and then let the creditors share that $22 billion which is cash, debt and equity according to their contractual rights and the priority under the bankruptcy code.

GHARIB: But time is running out here and if the deal between Chrysler and Fiat doesn't go through and Chrysler is forced to just liquidate, my understanding is that the value of the company, the break up value of Chrysler is under a billion dollars.

LAURIA: Well in fact there's no competent evidence in the record what the liquidation value of Chrysler is. The expert who testified in front of the bankruptcy court below left out critical assets from his valuation analysis. He used multiples that were well under market and most interesting to me, he was going to get a $10 million success fee if the deal went through which really raises a question as to whether or not his testimony was biased. ",,,,,,,,,,,,,,,,,,,,

Lauria continues on in the interview to dismiss the June 15 deadline. Basically, Fiat won't walk away from this deal. Why would they when they've been promised 20$ of the company with nothing down?

[matthew fuller]

After the resounding thumpins suffered by the socialists in Europe, this counts as Buckwheat’s second devastating piece of news TODAY! God save America!

[CottonBall]

I pray SCOTUS will provide the checks and balances that Congress is willfully disregarding.

They're our only chance until 2010. Not that I have much hope that conservatives with a backbone will be elected in the mid-term.

[Califreak]

I need a little glimmer of hope, but I just can’t help thinking about Lucy and Charlie Brown and the football.

[rcrngroup]

I know the black eye is photoshopped..... good job by the way!!! But the other thing I want to comment on is that 0booooooombashiite is an ugly, evil looking parasite!!!!

[skinkinthegrass]

[matthew fuller]

"I’m thinking, what if the corruption becomes so publicly known that voters actually give the House and Senate back to the Republicans in 2010? Then Impeachment is back on the table."

Not that I think that The Walking Dude is above corruption, I just wonder if these shenanigans have enough planning to qualify- I mean, I think that it's more likely that it's gross incompetence and stupidity more than anything else. I do agree that 2010 is looking better and better.

[Deo volente]

TOTUS dissed by SCOTUS...

Post of the Day!

(Pardon me, but I took the liberty to correct the spelling.)

[HKMk23]

... He’s not use to being told no.

Oh, I wouldn't be too sure; I bet The First Dragon Lady tells him "No" plenty often enough.

[bustinchops]

That’s what they get for being turncoats.

Lay down with pigs, you’re gonna get porked.