Posted on 04/30/2009 8:55:39 AM PDT by St. Louis Conservative
By Stephen Grocer The Obama administration on Wednesday failed to convince all of Chryslers lenders to agree to a debt-reduction deal. The administrations auto task force tried to get all 46 of Chryslers secured lenders to agree to a debt-reduction deal. But talks broke down, with a large number of the funds voting no. Now President Obama is expected to announce that Chrysler is going to seek reorganization in bankruptcy court. Here is the letter from the from non-TARP lenders to Chrysler explaining their decision to vote no.
April 30, 2009 As of last nights deadline, we were part of a group of approximately 20 relatively small organizations; we represent many of the countrys teachers unions, major pension and retirement plans and school endowments who have invested through us in senior secured loans to Chrysler. Combined, these loans total about $1 billion. None of us have taken a dime in TARP money.
As much as anyone, we want to see Chrysler emerge from its current situation as a viable American company, and we are committed to doing what we can to help. Indeed, we have made significant concessions toward this end although we have been systematically precluded from engaging in direct discussions or negotiations with the government; instead, we have been forced to communicate through an obviously conflicted intermediary: a group of banks that have received billions of TARP funds.
(Excerpt) Read more at blogs.wsj.com ...
I don’t think Newt is a lawyer, but he would make a damn good expert witness. And Rudy isn’t a securities or bankruptcy lawyer, but OMG what a dream team he could assemble!
Bill Griffeth on CNBC just said it will take the “mother of all incentive programs” to get people to buy from Chrysler
How about Mark Levin? He's a constituitional lawyer.
If you would like to be added or dropped from the Michigan ping list, please freepmail me.
I couldn't bring myself to watch the travesty. Did he actually use the phrase "shared sacrifice"? Ayn Rand had a great line that went something like, "When men call for sacrifice, check to see who is collecting the sacrificial offerings".
People used to use phrases like "My word is my bond" to indicate that they were trustworthy individuals. People used to treat debts like sacred obligations which is why bankruptcy was so shameful. People saw it as tantamount to theft. But that was then and this is now.
I know. It’s disgraceful.
The President of the United States referred to bondholders as speculators. Bonds are allegedly the most safe of investment vehicles. Now even those who invested most prudently are being condemned as wicked manipulators of the free market for their own selfish and greedy ends. Is this leadership? Can’t everyone see that this president is calling good stewardship bad citizenship and calling virtue vice?
Without Vaseline no doubt just salt.
In Obummer's case it will need to be KY jelly.
With Chrysler's (mis)Management and the UAW, there was no future to be endangered.
Thanks for the ping; post. Great thread/comments. HOORAY Non-Tarp Lenders! BTTT!
but this is like chicago style politics! and we were told Obama was the only virgin in that whorehouse!!
The REAL joke here is much of the bonds are held by companies that fund retirement portfolios. This is ESPECIALLY true for Michigan teachers. Funny huh?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.