It was the institutional bondholders who let this happen. Obama and crew gave the biggest holders an ultimatum and they caved, agreeing to the settlement that stripped them of their right to first claim. All the little guys were lumped in with them and got screwed, as well. However, I’m sure the Obama goobermint had plans to “settle-up” with the big guys, leaving the little guys in the lurch.
Here’s the special treatment article I remembered:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=af4lR7a4FXsM