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Did the Obama White House try to make Chrysler creditors "an offer they couldn't refuse"?

ABC News is reporting:

Thomas Lauria, Global Practice Head of the Financial Restructuring and Insolvency Group at White & Case, told ABC News that [White House financial adviser Steven] Rattner suggested to an official of the boutique investment bank Perella Weinberg Partners that officials of the Obama White House would embarrass the firm for opposing the Obama administration plan, which President Obama announced Thursday, and which requires creditors to accept roughly 29 cents on the dollar for an estimated $6.8 billion owed by Chrysler.


Lauria said the president's assertion that his clients weren't willing to make any sacrifice is false. The clients were willing to take 50 cents on the dollar from Chrysler for their debt, he said.

President Obama also said of Lauria's clients, "I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers, and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars. I don't stand with those who held out when everybody else is making sacrifices."

"He stands my clients up as basically the reason Chrysler is going into bankruptcy," Lauria said. "He wrongly says they're not willing to make any sacrifice. And then he says he does not stand with us."

Lauria said the president saying he doesn't stand with his clients "kind of sounds like 'You're fair game.' In whatever sense. People are scared. They have gotten death treats. Some have been told people are going to come to their houses. God forbid if some nut did something, I'm just wondering how the president would feel."

Shorter White House: Nice little investment group you've got there. It'd be a terrible shame if something were to happen to it.

Of course one could easily dismiss an outrageous-sounding story like this one ... if those very same things hadn't already happened within the last six months.


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Comments (7)

I'm surprised the Obamassia... (Below threshold)

I'm surprised the Obamassiah didn't mention "I won". Not surprised by the tactics, after all he is from Chicago. What's probably pissed the White House off is that Lauria dropped a dime on him to the press. You don't do that in Chicago.
Lauria could twist the knife even more by alluding to a recent CEO suicide that was probably brought on by Obama's "pitchfork crowd".
Hey Barry, how's it feel to have 'blood on your hands'?

I am not sure why this is... (Below threshold)

I am not sure why this is a big headline. I had presumed that the entire bailout was done via extortion right from the start. I suppose finding some sort of evidence was inevitable, but not at all surprising.

The Obama White House has m... (Below threshold)

The Obama White House has made America....regurgitate.. and it looks like Hellion Thomas' face.

just sayin

If Obama just threatened to... (Below threshold)
James H:

If Obama just threatened to embarrass Chrysler's creditors, I don't really see the headilne here. OTOH, if the White House implied some sort of retaliatory regulatory action, there is a problem.

James, it's not the threat,... (Below threshold)

James, it's not the threat, it's the type of threat. The Obama administration is alleged to have threatened to sic the White House Press Corps on them -- implying that the WHPC is, by and large, the willing servants of the administration.

Which is something that a lot of us have been saying about the mainstream press and the Obama people for some time now, and it's kind of nice to have the affirmation...


After, the first bomb was d... (Below threshold)

After, the first bomb was dropped Japanese military told people to wear white sheets to protect themselves. Some in the military and science divisions knew of the German bomb project and felt that the US did not have more than one or two bombs and that they could hold out. People forget that the Japanese Shinto was as fanatic as radical Islam.
Bankruptcy law says that secured debt get paid first, they get the most favorable position. BHO put them behind all the groups that were not legally entitled to that position. In order to do this they did the AIG scam where he publicly drags there name through the mud so thuggish groups can attack them.
The other Banks who would have complained about the deal all took TARP money and BHO "Stress Test" is not allowing them to give money back so they can escape government control.

ITs all about the EVIL JOOS... (Below threshold)

ITs all about the EVIL JOOS and BANKERS.

Just with a little more smoke and mirrors. The Night of Glass will be a little harder to camouflage.






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