May 2nd 2009
Contracts? Contracts?! Crush ‘Em!
If you had any doubts about how willing the federal government under Barack Obama is to throw around its weight and use 800,000-pound gorilla caliber threats to force its agenda, give a listen to this broadcast of Frank Beckman’s Detroit a.m. talk show, WJR.
About 1:30 in, you hear attorney Tom Laurie, who represents multiple creditors in the Chrysler bankruptcy – you know, the folks the Left calls “greedy” for daring to mention that they have a little thing called a contract - talk about what the negotiations with Obama’s representatives were like. Here’s the transcript:
Lauria: Let me tell you it’s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent. That’s a moving target. I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence.
Interesting, isn’t it, that the White House is so convinced it can weild the White House Press Corps as its weapon? Laurie’s client, Perella Weinberg, certainly believed the Rahmbabas’ confidence in that ability is not the least bit misplaced. This little bit of history, then, is as much a condemnation of the mainly marginalized media as it is the Obama admin.
Not sympathetic to Lauria’s client? Well, consider this passage, which immediately follows:
Lauria: Now let me just tell you, to be clear, that we do not oppose the rehabilitation of Chrysler. We think it is vitally important that a company like Chrylser be protected to the extent that it can be within the framework of the law. I also want to say that we do not oppose the government backstopping and supporting the pensioneers and retirees and workers of Chrysler. I actually think that in a troubled economic times like we’re in, that is an appropriate role for the government to perform.
What we do oppose is the abuse of the bankruptcy laws to coerce first lien lenders to subsidize the rehabilitation of Chrysler or the backstop of the obligations to the pensioneers and retirees beyond what they will do voluntarily. And just to be clear, these clients of mine have agreed to compromise 50 percent of their first lien position to help support the rehabilitation of Chrysler Company – contrary to what the president said yesterday at his news conference, that these people will not give to support the effort, they have agreed to compromise 50 percent of what they’re owed.
There you go. Granted, Laurie is an advocate, but he obviously knows he can’t misstate the megotiation points in Detroit of all places, so I’m going to go way out on a limb here and say the president misrepresented the truth … lied … to villanize investors and capitalists in order to further expand federal government control of the economy.
Laurie’s response hit twice on the federal government’s willingness – eagerness – to abuse the law in order to get what it wants. Think about what that tells us about the type of person Rhambama will pick for the Supreme Court.
hat-tip: Island Turtle
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