U.S. Treasury Department Pushed Fiat Deal on Chrysler

The Wall Street Journal reports on the bullying tactics of the Obama administration and its Treasury Department in capitalistic ventures, namely the Fiat deal with Chrysler:

WASHINGTON — The Obama administration rushed an alliance between Chrysler LLC and Fiat SpA despite Chrysler’s worries about Fiat’s financial health and its willingness to share technology, according to internal company emails.

The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. A Chrysler adviser at one point said the deal risked looking as if the U.S. auto maker and the Treasury Department, which helped broker the pact, were “in bed with a shady partner.” In another note, an official referred to the Treasury Department as “God.”

On Friday, a federal appeals court upheld Chrysler’s Fiat deal, dismissing a challenge by dissident Chrysler debt holders. But the court also issued a stay until 4 p.m. Monday — leaving a small window for Thomas Lauria, the lawyer pursuing the case, to appeal to the Supreme Court. One judge on the three-judge panel suggested the Supreme Court should have “a swing at this ball.”

Mr. Lauria’s persistence led one government lawyer in the Chrysler case to dub him a “terrorist” in an email to a Chrysler adviser.

The revelations come as the Obama administration is rushing to get a bankruptcy court to sign off on the Chrysler-Fiat merger as early as next week. Fiat has the right to walk away from the deal if it isn’t consummated by June 15.

At the outset, the Chrysler team appeared leery of the role being played by the Treasury, which was leading the effort to save the auto maker. “I think we are clearly getting more cooks in the kitchen,” Mr. Nardelli said in an email.

However, Chrysler quickly learned to defer to the Treasury team.

It’s interesting who the Obama administration believes are”terrorists”, in this case, Chyrsler debt holders. 

Comments

[Amy Proctor]

Government control anyone?

[Gary]

Oh yeah, but just more of the same. Now we discover Government Motors is selling the HUMMER line to a chinese manufacture. Thanks to the UAW and the Narssisistic attitude of the left, the remaining US auto manufactures will soon follow the way of Tucker and deSoto.

[Amy Proctor]

I've never seen anything like it, Gary. Talk about audacity. And this Fiat Deal benefits US unions and stiffs police and teacher pensions, but the goverment doesn't seem to care about the little guy.

[TOM]

but the goverment doesn't seem to care about the little guy.
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Since Americans weren't buying GM cars (companies with products people WANT to buy don't usually go under, unless management is robbing the place blind) it looks like the "little guy" didn't care about GM!

[J Rob]

Sorry, Tom, that still does not alter the fact that these actions make your savior nothing more than a facist minus the genocide (though his unqualified support for abortion does not remove that from the table)

[Gary]

"...unless management is robbing the place blind) it looks like the "little guy" didn't care about GM!..."

Dang, Tom.

Is there no end to your stupiditiy?

Management didn't screw GM; The UAW did with 100% medical coverage for retirees.
The union I belong to (I haven't workd labor in 9 years but my pension is still there), recently eliminated 100% medical benefits for our retirees simply because the cost was extrodinary. You see, if they are retired, they are not paying into the fund, and every time another member retires, the burden on the current workers is increased until the wage necessary to maintain benefits becomes so cumbersome that it affects collective bargaining.

The UAW screwed GM, its members and the American people because of its greed.