Saturday, May 02, 2009
A follow-up on Chrysler
After the first exuberance over a potential settlement of the Chrysler crisis, the facts came in;
Of the 46 Bondholders, 17 did not find the $2B settlement of the $6.9 debt adequate, They were mostly vulture funds, who bough the bonds at 30 centsto the dollar, and wanted more, hang the US economy and industry. Some of the names are Oaktree Cap Management, Oppenheimer Fund ( sub of Massachusete Mutual Life, which should know better), Stairway Cap
gt., Schultze Asset Mgt, Group G Cap Partners and the TCW Group. Elliott Mgt, Perella Weinberg and its Xerion Fund decided ti stay with the leaders. The vulturs' beef includes the fact that JPMorgan Chase, Cit group, Goldman and x received bailout, they did not. Comon, sharks, you double dipped with subpar mortgages, bailed out by CDS coverage paid by the taxpayers.
Equally painful is that UAW gets 55% of the reconstructed Chrysler shares, and Ron Gerttelfinger gloats, his political power and some 260 Chrysler/UAW votes swung the deal Did he give up the ridiculous UAW retirement clause ained by the 1970 strike that permits retirement after 30 years at full benefit? Several age 48 retirees are out there, complaining that their middle-class status is being violated by bad managemewn (see Ed McCain, shop stewart who retired at 48, in Peter Boyle's article in The New Yorker , 4/27/2009). Also see the UAW job corp that puts Chrysler workers on 95% salary if their factory work is stopped ( Robert nardelli testimony ditto). Are those contract provisions still chewing up bailout funds?
Of the 46 Bondholders, 17 did not find the $2B settlement of the $6.9 debt adequate, They were mostly vulture funds, who bough the bonds at 30 centsto the dollar, and wanted more, hang the US economy and industry. Some of the names are Oaktree Cap Management, Oppenheimer Fund ( sub of Massachusete Mutual Life, which should know better), Stairway Cap
gt., Schultze Asset Mgt, Group G Cap Partners and the TCW Group. Elliott Mgt, Perella Weinberg and its Xerion Fund decided ti stay with the leaders. The vulturs' beef includes the fact that JPMorgan Chase, Cit group, Goldman and x received bailout, they did not. Comon, sharks, you double dipped with subpar mortgages, bailed out by CDS coverage paid by the taxpayers.
Equally painful is that UAW gets 55% of the reconstructed Chrysler shares, and Ron Gerttelfinger gloats, his political power and some 260 Chrysler/UAW votes swung the deal Did he give up the ridiculous UAW retirement clause ained by the 1970 strike that permits retirement after 30 years at full benefit? Several age 48 retirees are out there, complaining that their middle-class status is being violated by bad managemewn (see Ed McCain, shop stewart who retired at 48, in Peter Boyle's article in The New Yorker , 4/27/2009). Also see the UAW job corp that puts Chrysler workers on 95% salary if their factory work is stopped ( Robert nardelli testimony ditto). Are those contract provisions still chewing up bailout funds?
# posted by Wally Dobelis @ 3:11 PM 
