Wall Street Folly

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"Be a F*cking Person!": Jon Stewart roasts $GM and Chrysler over how they pulled the rug out from under dealers

The Daily Show With Jon Stewart	M - Th 11p / 10c
Be a F@#king Person - Dealer or No Dealer
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If only the taxpayers could object to the Chrysler bailout: That $7 billion or so we're "lending" them? It's not getting paid back

Obama's money pit:  We kind of thought that the point of lending bailout money was to get a return on it, or at the very least to get all or most of it back. But those deep thinking gurus in D.C., in charge of doling out our taxpayer funds to temporarily prop up ailing companies don't seem to be doing so well on our behalf.  Turns out that the funds that were lent to Chrysler just months ago, not to mention what we've just lent them days ago to see them through their bankruptcy, won't be paid back. Gone. *Poof*  All that we'll have to show for it is a not even 10% Chrysler equity stake, of questionable value, if the firm somehow manages to survive.  And that's a big IF.

So all in all, along with the nonTARP senior lenders, we the taxpayers are getting screwed royally in the deal. And we didn't even have the chance to file an objection with the bankruptcy judge.  So who reaps the benefit? Obama and his cozy relationship with the UAW that we've all now apparently subsidized. If we really wanted to lose money that badly, we could have put it with Bernie Madoff.

And Joe Biden tells us that paying taxes is patriotic? *COUGH*

Another must read from the Chrysler bankruptcy filings - The Non-Tarp Lenders' request to have their identities filed under seal as a result of death threats resulting from the Obama regime's "propaganda"

More talk about the heavy handedness of the Obama regime, as well as how the "propaganda" has led to death threats to members of the Non-Tarp Lenders.....

Here are some excerpts as well as the full filing:

Bankruptcy Court Filings: Preliminary and First Supplemetary Objections of the Chrysler Non-TARP Lenders to Obama's 363 sale plan

Excellent reads: Here are the bankruptcy court filings made yesterday and this morning by the Chrysler NonTARP Lenders objecting to the flawed and unfair plan that tramples all over creditors' rights. 

Amid death threats, Chrysler NonTARP lenders move to block the restructuring

Chrysler's nonTARP lenders have made their move to block the Obama administration's restructuring that did an end run around their senior position in the capital structure.  A bankruptcy judge will hear the case on Tuesday.  And reminiscent of AIG, some of the creditors have apparently received death threats according to their lawyer Tom Lauria.  According to the Financial Times:

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."