The greedy bastards who took out Chrysler have released a statement explaining their actions. Predictably, the cowards have not stepped forth to show their faces in the light of day, hiding instead behind the unsigned statement:
The group, which does not identify who they are but sources said includes boutique firm Perella Weinberg, hedge fund Stairway Capital and asset manager OppenheimerFund, said they had been “systematically precluded” from engaging in direct negotiations with the government, which they said had been largely done by four large banks that own 70 percent of the $6.9 billion in loans. Goldman Sachs, Citigroup, JPMorgan and Morgan Stanley have all agreed to the government’s offer of $2.25 billion, or 33 cents on the dollar, for the loans.They wanted 60 cents on the dollar for their holdings, and expect that they will be paid in full if Chrsyler slides into bankruptcy.
I hope Congress passes legislation denying them any compensation (perhaps a narrowly tailored 99% tax on these proceeds is in order).
Remember: the American taxpayer is ponying up some $1.3 trillion to rescue the financial sector, and these financial sector crooks are unwilling to sacrifice 27 cents on the dollar.
2 comments:
American business, like American citizens, are addicted to debt. The major reason that Obama has not left bond-holders out to dry, is to try to maintain the illusion that credit-hungry business-as-usual is sustainable.
I agree with the sentiment that the bold-holders deserve to get pennies on the dollar, but they are wise to hold out for much more, because they know the game Geithner is playing: making the taxpayer pay to maintain the illusion that past levels of corporate debt is maintainable.
In the restructuring of the corporation, it would be wrong to take away the workers' pensions. They worked years to earn them. They played by the rules the way the rules were at the time, so it wouldn't be right to change the rules after they did their part.
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