The Obama administration is pressuring banks that have received tarp funds to accept 15 cents on the dollar for some 7 billion in Chrysler bonds they own. It's estimated that the banks could get 30 to 50 cents on the dollar in a bankruptcy of the auto company. Now, why would the administration do this? The answer is to pay back their union buddies in the UAW. If the company enters bankruptcy, the union contracts will almost certainly be torn up, and Obama's supporters won't be happy goons and thugs. It's been reported that certain banks wanting to pay back their tarp funds have been denied that option by the administration. Not hard to connect the dots here. Obama wants to retain "working control" of the banks so as to use them as part of his efforts to socialize the economy and pay back his supporters. A billion or two of under the table money. Disgraceful. http://www.washingtonexaminer.com/o...ntial/Have-I-got-a-deal-for-you-43176797.html
Plus he wants control of the car copanies so he can dictate what type of cars they produce. Fortunately he will be gone in 2012 if not before and then we can fix his mess. It's actually will be a good thing in the end because people are waking up to the Nazi Democrats.
Maybe slightly OT but a bank with a corporate flight department near me was forced by the feds to liquidate their company aircraft recently as a stipulation for some sort of assistance. What makes this even worse than just the feds dictating these sort of conditions is that 90% of this banks loans were still performing loans. People (taxpayers) who design, build, maintain and fly corporate aircraft have/need jobs too - don't they?
Yeah but GM is headed into BK too... it will be interesting to see how the union contracts fare, I'd love it if the judges tossed them and opened the jobs up to whatever the market would bear in wages... that would make BO the biggest union buster ever...