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If the Obama administration expected the senior creditors of Chrysler to fold their tents under political pressure, they may have gotten a rude shock today. Thomas Lauria, who accused the White House of threatening the creditors withn humiliation at the hands of the White House press corps, has filed a motion to halt the administration’s machinations on behalf of the UAW in the Chrysler bankruptcy. Lauria and his allies claim that the Obama administration has violated the Constitution in their bid to devalue the senior creditors’ holdings on behalf of junior creditors, and have some precedent to support the allegation.
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One might think that a Constitutional scholar like Barack Obama would have already known that, but either this precedent escaped him or he doesn’t care about it at all. Brandeis acted to uphold contract law, especially in the face of a government interest in paying off politically-connected unsecured creditors ahead of the senior creditors. There is no other reason for Brandeis to make that decision, as only government could insert itself into the contractual relationship during a bankruptcy proceeding — just as Obama has done with Chrysler.
The arrogance is breathtaking.
Look in your portfolios - maybe YOU are one of the investors.
Look in your portfolios - maybe YOU are one of the investors.
LOL... yeah, maybe you guys are wealthy enough to have invested in a hedge fund... LOL... you guys are too ridiculous for words. I think real Chrysler shareholders would much rather have the company survive... do you know what these hedge funds want? They want the company sold off piece by piece because they will get a higher return than through the current plan. And all they have to do is yell "Unconstitutional" and you knee-jerk conservatives come running like lap dogs.
Bankruptcy law is quite clear on this. If the president has a problem with it, he can take it up with the SCOTUS. It matters not what the investors want to do with this company, as long as preferred bondholers are paid. Additionally, when Chrysler's assets eventually get sold off, hopefully the purchasers will utilize the infrastructure to build a real car company.
This is why I don't invest a dime in US companies. Until government allows shareholders a say in the company and dividends become more flexible, it's 100% international for me. Returns have been WAY above the Dow this year.
I see. Michelle Malkin - the woman who claims that imprisoning Japanese-Americans in WWII was a good idea - that's who you go to for commentary on what's legal today?
I see. Michelle Malkin - the woman who claims that imprisoning Japanese-Americans in WWII was a good idea - that's who you go to for commentary on what's legal today?
That explains a lot.
So bankruptcy law should be turned on its head for politics' sake?
LOL... yeah, maybe you guys are wealthy enough to have invested in a hedge fund... LOL... you guys are too ridiculous for words. I think real Chrysler shareholders would much rather have the company survive... do you know what these hedge funds want? They want the company sold off piece by piece because they will get a higher return than through the current plan. And all they have to do is yell "Unconstitutional" and you knee-jerk conservatives come running like lap dogs.
When underwriting risk a shareholder/speculator/bondholder (s) will often times insure the risk of their capitol by insuring the secured creditor position and possibly have the funds privately insured. Either way, as an investor I would never sacrifice my risk, my investment, my money and my senior creditor position .... for a junior position behind the UAW. I am entitled to be satisfied and not OBAMA AND NOT THE GOVERNMENT AND ESPECIALLY NOT THE UAW. This is what is so horrific in having Government intrusion and Cram downs. My money... my risk... my payback.... my decision.... NOT Obama's.
LOL... yeah, maybe you guys are wealthy enough to have invested in a hedge fund... LOL... you guys are too ridiculous for words. I think real Chrysler shareholders would much rather have the company survive... do you know what these hedge funds want? They want the company sold off piece by piece because they will get a higher return than through the current plan. And all they have to do is yell "Unconstitutional" and you knee-jerk conservatives come running like lap dogs.
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Speculators and Fiduciary Responsibility
