Chrysler Bankruptcy Means Taxpayer Money Down The Drain

So the Obama administration funneled billions of US taxpayer dollars to save troubled automaker Chrysler, and what happens? The automaker files for bankruptcy. Thanks for nothing!

According to CNBC: ” Treasury reached a deal earlier this week with four banks that hold the majority of Chrysler’s debt in return for $2 billion in cash.

But the administration said about 40 hedge funds that hold roughly 30 percent of that debt also needed to sign on for the deal to go through. Those creditors said the proposal was unfair and they were holding out for a better deal. “I don’t stand with them,” Obama said.

A person briefed on Wednesday night’s events said the Treasury Department and the four banks tried to persuade the hedge funds to take a sweetened deal of $2.25 billion in cash.

But in the end, this person said most thought they could recover more if Chrysler went into bankruptcy and some of its assets were sold to satisfy creditors.”

So Obama is upset at investors, that have the law behind them, that they didn’t want to get screwed like GM investors did?

Mr. President, if you keep screwing bondholders, you will eliminate any trust that investors have in the bond market. Then you will really get your wish of an economic depression.

Tagged as: bankruptcy, chapter 11, Chrysler, gm, government bailouts, Obama, screwing investors, US Economy