You may get tired of hearing this, but it needs to be repeated over and over and over. Back in 2006, the Democrats campaigned on a Republican culture of corruption. Their claim was that they would bring back transparancy and fairness to Washington D.C.
Well, the Dems lied to us. They are more immersed in a culture of corrpution than the Republicans ever were, even more than they claimed the Republicans were. Now, we can see that this culture of corruption extends all the way to Barack Obama and the White House.
The Chrysler bankruptcy deal was supposed to sail through with no problems and Fiat would be the new majority owner at the end. But, the Obama administration didn’t count on a group of Indiana pension funds looking critically at the deal and finding out what was really going on.
This whole deal with Chrysler was about paying off union supporters at the expense of Joe and Jane Average American.
From the Dow Jones Newswires:
|Fiat would initially own 20% of the new company, though it would have the option of increasing its stake to as much as 51%. A United Auto Workers health-care trust would initially get a 55% stake, while the U.S. and Canada, which are lending Chrysler $4.9 billion during the bankruptcy, would own 8% and 2%, respectively.
Senior lenders owed $6.9 billion would receive $2 billion, giving them a recovery of about 29 cents on the dollar. The Indiana funds own about $42 million of the senior debt.
The UAW’s health-care trust has an unsecured claim against Chrysler for about $10.5 billion. In addition to the equity stake in Chrysler that the trust, an unsecured creditor, would receive, it would also get a $4.5 billion note under the plan.
In other words, the UAW, a junior creditor, would be given preference over the Indiana pension funds, part of the senior lenders group. This is why the Supreme Court has temporarily blocked the sale, to look at the legality of this situation.
Giving junior lenders preference over senior lenders is wrong. This is clearly an attempt by the Obama administration to pay off their leftist union supporters through the sale of Chrysler and screw over hard-wroking Americans in the process.
(BTW, didn’t Obama promise to get the automakers back on their feet? Why is he now so hot about selling them off?)
The concept of fairness and the due process clause in the Constitution dictate that senior lenders must be tended to first and junior lenders after that. Obama is trying to turn that around. In other words, he is changing the rules in mid-stream so that his supporters get the greater benefit at the expense of everyone else.
The Democrats’ culture of corruption now adds to Nancy Pelosi, Tim Geithner, Charlie Rangel, William Jefferson and Todd Blagovich the name of Barack Obama.
You can access the complete article on-line here:
Pension Funds Ask High Court To Delay Chrysler Sale
Mark H. Anderson
Dow Jones Newswire via Wall Street Journal
June 8, 2009
And another good analysis can be found on-line here:
Don’t Like the Game? Change the Rules
June 8, 2009
Filed under: Constitution, Corruption, Culture of Corruption, Government, Justice and Courts, Politics, Unions | Tagged: Blagojevich, Chrysler, Culture of Corruption, democrats, Fiat, Indiana, Mark Anderson, Obama, pension funds, Supreme Court, UAW |