rolankie wrote:What dirty tricks did Barack Obama administration use to convince the creditors of Chrysler to accept? to accept 28 cent on a dollar of secure debt, whereas junior creditor UAW receives 80 cent on a dollar. What leverage did Barack Obama use against the creditors?
Only a guess and an only semi-informed one at that here but.....
I think that it was pretty apparent that Chrysler, along with GM, was going to go bankrupt. The President was out there claiming at every opportunity that a bankruptcy would spell the end of those car companies and the losses of hundreds of thousands of jobs and billions in pensions and tax revenue. While that wasn't the case- all a bankruptcy would have done is allow the company to restructure itself to assure at least a better chance of becoming profitable through renegotiating its contracts with various suppliers and, more importantly, with the unions. I'm pretty sure- maybe- that Obama knew that but that would not allow him to take over those companies, bail out the unions, force the companies to make the kind of cars he thinks we ought to be driving, bail out the unions and assure the Democrat Party of the undying loyalty of the unions...by bailing out the unions.
My guess is that the investment bankers, knowing which party was running the show, decided that a few cents on the dollar was better than no cents on the dollar and signed onto the agreement. Something
is better than nothing