White House Threatens Investment Bank For Opposing Plan

Discussion in 'Current Events' started by Burp, May 3, 2009.

  1. Burp
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    Burp Always carry, never tell

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    A leading bankruptcy attorney representing hedge funds and money managers told ABC News Saturday that Steve Rattner, the leader of the Obama administration's Auto Industry Task Force, threatened one of the firms, an investment bank, that if it continued to oppose the administration's Chrysler bankruptcy plan, the White House would use the White House press corps to destroy its reputation.

    The White House and a spokesperson for the investment bank in question challenged the accuracy of the story.

    "The charge is completely untrue," said White House deputy press secretary Bill Burton, "and there's obviously no evidence to suggest that this happened in any way."

    Thomas Lauria, Global Practice Head of the Financial Restructuring and Insolvency Group at White & Case, told ABC News that 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 his clients "are mainly fiduciaries for pension plans, college endowments, retirement plans and credit unions who invested in low yield supposedly very secure first lien debt" with Chrysler.

    President Obama singled out Lauria's clients for criticism when he announced the Chrysler plan on Thursday.

    "While many stakeholders made sacrifices and worked constructively, I have to tell you some did not," the president said. "In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout. They were hoping that everybody else would make sacrifices, and they would have to make none."

    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."

    White House Denies Charge By Attorney that Administration Threatened to Destroy Investment Firm's Reputation* - Political Punch
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    ABC isn't biased right? I can never keep track.
     
  2. Yurt
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    Yurt Gold Member

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    obama has been using these tactics for a long time, acorn etc....

    its kind of funny how obama denies it, then mocks them for holding out while others are sacrificing...
     
  3. Toro
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    Toro Diamond Member

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    I think Obama should STFU about this and stop singling out creditors. He is the GD President of the United States, not some low-ranking newbie member of the Illinois House. The debt holders have an obligation under the law to fight in the best interests of their clients. I hope they tell the White House to f*** off.
     
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  4. Gunny
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    Gunny Gold Member

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    Where there's smoke there's fire. Haven't we recently heard about such goings on in regard to accepting bailout money?

    IMO, Obama is overstepping the government's bounds by interfering to begin with.
     
  5. WillowTree
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    WillowTree Diamond Member

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    someday,, you will listen when told the obamalama is a marxist! someday!
     
  6. Burp
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    Burp Always carry, never tell

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    I'm waiting to read what kind of defense the Obamatrons can come up with for this one.
     
  7. garyd
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    garyd Senior Member

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    Hell you just saw it plausible deniability. The usual shtick for corrupt politicians.
     
  8. Ame®icano
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    Ame®icano Gold Member

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    It worked with Bank Of America...
     

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