A message the Hedge Funds should have watched before they tried to "take advantage" of Obama's

[Pirate Smile]

reasonableness:

Flashback: Staying tough while extending an olive branch

Posted by Jed Lewison • Jan 23, 2009 at 12:31 PM Pacific
Barack Obama in late 2007:


http://www.dailykostv.com/w/000339/

"I will crush them."

One has already tried to backtrack and accept the deal:

Chrysler holdout changes mind on settlement offer

Source: Detroit News

Thursday, April 30, 2009
Chrysler holdout changes mind on settlement offer
Gordon Trowbridge / Detroit News Washington Bureau


Washington -- One of the investment firms singled out Thursday for blocking Chrysler's restructuring now says it would accept the Obama administration's offer.

It wasn't yet clear whether the change of heart by Perella Weinberg Partners could change the course of Chrysler's restructuring. The decision, announced in a written statement, came hours after the automaker filed for Chapter 11 bankruptcy protection.

"The Perella Weinberg Partners Xerion Fund has today agreed to the Chrysler Settlement offer extended yesterday to the Secured Lender Group," said the statement. "We believe that this is in the best interests of all Chrysler stakeholders, and our own investors and partners. We are working with other non-TARP lenders to encourage broad participation in the settlement."

Politicians from President Barack Obama on down Thursday criticized a small group of holdout lenders for blocking an out-of-court restructuring. Sen. Debbie Stabenow, D-Lansing, named Perella and two other management firms -- Stairway Capital Management and Oppenheimer Funds -- as the main holdouts.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3856552

[Thrill]

1. The judge isn't going to give them more than the govt was offering

They just knew that Obama wasn't going to let Chrysler go into bankruptcy. He fooled their ass.

[Pirate Smile]

2. I certainly hope they get less. I'd love to see them have to pay for part of the entire

bankruptcy procedure which will cost $$$.

[iconocrastic]

14. Are we going to just change established legal prescedent because we favor one group of creditors?

Ok, so we hate hedge funds.

Let me ask you something. Say the judge's brother-in-law owes you money, you take him to court and the judge favors the brother in law.

Besides the injustice, who is ever going to lend money to the brother-in-law,and who is ever going to trust the legal system?

This is the direction this thing is going.

It's not always the outcome you want that determines who has the legal right.

Maybe you disagree.

Think about it.

[iconocrastic]

15. Maybe you're intoxicated with a display of power when the other guy gets the shaft

That's a sign of cowardice and greed. Maybe you can't see that.

[Kdillard]

3. Dumb, they deserve the public flogging and whatever losses they have to take.

When will people learn that the President is reasonable up to a point and testing his patiwence will get you nothing.

[Pirate Smile]

5. Don't play poker or chicken with Barack Obama.

You'll lose.

[Pirate Smile]

4. kick

[vaberella]

6. I definitely don't underestimate this administration. n/t

[Egnever]

7. This story makes me smile :)

So off to the greatest with you!

[uponit7771]

8. K&R

[Blue Gardener]

9. I hope they get nothing.

Working against President Obama was an incredibly stupid thing to do.

[formercia]

10. Time to play bad cop.

Make an example. The fund managers all want to get out of this without a loss. Everyone is taking a hit. My wife's 401K lost 40%. We took our hit. Now it's their turn.

[Pirate Smile]

11. kick

[Cha]

12. There's a lot of people who

didn't pay attention to what Obama was saying at their own peril.

[Pirate Smile]

13. kick