Obama has the power to supersede the CEO of a private company. Cool! How did he get it? http://www.reuters.com/article/bigMoney/idUS118748959020090331
Last time I checked, Chrysler was being run by a private equity fund who was using taxpayer money to stay in business. They don't have to follow Obama's proposal, but if they want ANOTHER $6 BILLION of taxpayer money, they will have to. In otherwords, if you want taxpayer money to stay in business ( because your management team and board of directors are so horrible ) then you have to pay the "piper". Otherwise, you don't receive anymore TAXPAYER MONEY. It's Bankruptcy. It's either/or. Pretty simple.
The Auto Union and the Bondholders have been playing a massive game of "chicken" here . . . This essentially ends the game of "chicken".
Obama is overreaching mightily no doubt, but I would prefer Chrysler in fiat's arms instead of anybody from china...
Chrysler is a horror show. They have been on "life-support" for quite some time and have 30 days left to make some decisions otherwise the "plug" gets pulled. As for GM, they should have declared BK in the 4th quarter of last year and saved Taxpayers $17 Billion. But the Bush Administration rescued them and put off their day of reckoning and the game of "chicken" between the UAW and the bondholders continued.