Circular Firing Squad
Yesterday's action by the US Supreme Court to hold up the Chrysler/Fiat merger is fascinating to watch.
The merger, orchestrated by the Obama Administration, handsomely rewards the UAW by giving them a highly disproportionate share of the new entity. In fact, the administration is doing this to the direct detriment of the SECURED bondholders of the former entity.
Well, a group of those bondholders has now brought a civil action to the US Supreme Court to have the Administration's heavy handed actions upended. These bondholders feel the UAW is being unjustly rewarded.
The bondholder group has been casually referred to as "greedy investors" by the administration.
The "greedy investors", who are bringing the action, are, ironically, a group of Indiana unions who had invested their pension benefits in Chrysler bonds. They are rightfully distressed that the Obama administration has upended the rule of bankruptcy law to drive their own agenda.
Obama vehemently denied that his words to Joe the Plumber of "spreading the wealth around" were accurate.
A Circular firing squad has now been formed as one union battles another for control of Chrysler assets.
And Obama's early words are now becoming reality.
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