The Thuggings Continue
Yesterday’s news that the Obama administration had applied undue pressure on senior, secured creditors was bad enough. Now it’s apparent that that was just the tip of the iceberg:
Creditors to Chrysler describe negotiations with the company and the Obama administration as “a farce,” saying the administration was bent on forcing their hands using hardball tactics and threats. Conversations with administration officials left them expecting that they would be politically targeted, two participants in the negotiations said.
It gets worse:
The sources, who represent creditors to Chrysler, say they were taken aback by the hardball tactics that the Obama administration employed to cajole them into acquiescing to plans to restructure Chrysler. One person described the administration as the most shocking “end justifies the means” group they have ever encountered. Another characterized Obama was “the most dangerous smooth talker on the planet…and I knew Kissinger.” Both were voters for Obama in the last election.
One participant in negotiations said that the administration’s tactic was to present what one described as a “madman theory of the presidency” in which the President is someone to be feared because he was willing to do anything to get his way. The person said this threat was taken very seriously by his firm.
I’ve long thought that President Obama is a narcissist and a ruthless Chicago machine politician. That’s why I find these accusations totally credible. Captain Ed thinks that way, too:
The story now has more than one source, and mounting testimony — albeit understandably anonymous testimony, at least at this point — that the White House tried threatening senior creditors instead of doing their job in enforcing the law. Not only do they not realize that their responsibilities do not include building business plans for private enterprises, but also don’t include assuming the role of Michael Corleone and acting like organized-crime thugs. Actually, the way the White House made Obama sound, maybe Sonny Corleone is a better analogy … or perhaps Fredo.
I’ve said that this administration has created a new cliche. In decades gone by, the cliche was “I’m with the federal government and I’m here to help you.” That’s since morphed into “I’m with the federal government and I’m here to make you an offer you can’t refuse.”
Such is the way it is with the Obama thugocracy administration.
I’m interested in is finding out who were the Obama administration people in the room when the threats were made. Was Timothy Geithner in the room? Was Rahm Emanuel? Certainly, it isn’t unreasonable to think that senior Treasury Department people were involved in the negotiations. It definitely isn’t a stretch to think that Rahm Emanuel was incapable of making that type of threat.
Unfortunately, there’s no chance that Congress will lift a finger to investigate the Obama administration.
Technorati Tags: Bankruptcy, Chrysler, Negotiations, Perella Weinberg, President Obama, Rahm Emanuel, Timothy Geithner, Threats, Senior Creditors
Cross-posted at LetFreedomRingBlog
May 5th, 2009 at 11:58 pm
This is really dumb.
Why the hell should institutional investers, and other governments buy T Bills and Treasury bonds to fund all this new debt?
If this government is going to treat corporate creditors like shit, and show such contempt for corporate stock and bond holders, why should fund managers and buyers think, the Treasury’s own creditors will be treated any differently?
And before anybody starts yelling and screaming about how much they and all those greedy bastards deserve it, think about this; if your in a retirement fund at work, have an IRA, a 401 or 415, a 257 for your children or grandchildren’s college, or whatever, when Obama gives the one finger salute to Chrysler’s creditors, or Wall Street, he’s giving it to you!