Wall Street Folly

Chrysler Voluntary Bankruptcy Petition Filing - 4/30/09

Chrysler Chapter 11 Press Release

It's done: Chrysler filed Chapter 11 in the Southern District of NY

Per Bloomberg:

....Dissident creditors intend to object to the company’s reorganization plan, a person familiar with their thinking said. That might thwart President Barack Obama’s goal of a “surgical” bankruptcy that would put a viable carmaker quickly into the market.

The case will be heard by Arthur Gonzalez in U.S. Bankruptcy Court in New York.

Fingered by the Obama administration as responsible for taking down Chrysler, the non-TARP lenders fight back with their own statement

The nerve of those nasty hedge funds that hold first lien secured Chrysler paper who won't roll over and accede to the will of the Obama administration.  Because they wouldn't roll over and allow themselves to be totally screwed in favor of more junior creditors (like the UAW to which Obama is politically beholding), they're being painted as the sole reason for the failure to cobble together an out of bankruptcy restructuring.  We cry bullshit on the Obama administration (as well as their continual deluded statements that any bankruptcy will be "quick" or "surgical" or "quick rinse". Good luck with that).  Following is a statement from an unnamed Obama administration official cited by the Wall Street Journal, and below that is the response of the hedge funds (aka, the Non-Tarp Lenders).

Earlier Thursday an administration official said the restructuring of Chrysler LLC will go forward even though a handful of hedge funds have refused to accept the Treasury Department's offer to cut the auto maker's debt.

"Their failure to act in either their own economic interest or the national interest does not diminish the accomplishments" by Chrysler, its planned alliance partner Fiat SpA and other stakeholders in the company, the official said, "nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward."

Charlie Rose: A conversation with Bill Gates and his dad

Where's my $63 million?: Harbinger's Phil Falcone is sued by an ex partner over funds he claims are owed under his separation agreement

Falcone has apparently offered to pay Howard Kagan, his ex-partner and CIO, half of the $63 million if he agreed not to sue....

WSF Headline Roundup-4/30/09 - Still no Chrysler deal, next stop CH 11; $GM bond holders make counter offer; Questions about Goldman bond sale timing; State Street probe; Fairfield Greenwich responds to Mass. claims; Ranieri: housing near bottom?

• Chrysler in last ditch push for survival deal
• General Motors Bondholders Make Counteroffer for Majority Stake
• Timing of Goldman bond sale raises questions
• State Street Probe Examines Whether Firm Misled Clients
• Fairfield Greenwich Responds To Mass. Madoff Claims
• Emerging Markets Sell Most Bonds Since June, With 13% Yields
• BOJ Says Japan Economy Will Grow in 2010 After Shrinking 3.1%
• Ranieri Says Housing Is Shouting Distance From Bottom
• Evercore to Buy Bank of America’s Fiduciary Services
• Starbucks Profit Declines as Consumers Spend Less
• MGM Mirage Resolves CityCenter Rift, Wins Lender Pact
• Fontainebleau Says It’s in Talks With Bank of America
• Wal-Mart U.S. Chief Says New Customers Spending More

No longer BofA Chairman, Ken Lewis still has his CEO job; Mack and Lewis blame Congress imposed pay limits for exec exodus; Holduts could force Chrysler Ch 11; Obama thinks it will be "quick" (What is he smoking?); Congress' latest bad idea: naming names

Robert Reich: Fire Ken Lewis

We can already hear Congress howling: Citigroup ($C) wants Treasury permission to pay 'retention' bonuses

Is there any doubt that there will be big fireworks over this?: Citigroup is asking the Treasury to allow the payment of retention bonuses, especially at divisions like the profitable Phibro energy trading unit.  According to the WSJ: