The Wall St. fund managers haven't learned their lesson. They thought that they could hold out and Obama would cave on the Chrysler deal...not only were they wrong, but now they are going to get a nice beatdown.
The Lenders Obama Decided to Blame
Peter A. Weinberg and Joseph R. Perella are part of a band of Wall Street renegades — "a small group of speculators," President Obama called them Thursday — who helped bankrupt Chrysler
Well they tried, and this is what they got:
In a rare flash of anger, the president scolded the group Thursday as Chrysler, its options exhausted, filed for bankruptcy protection. "I don’t stand with those who held out when everyone else is making sacrifices," Mr. Obama said.
When they realized that the President wasn't fucking around and they were going to take in the rear, they came back to table. But it was too late!
Chastened, and under intense pressure from the White House, the investment firm run by Mr. Weinberg and Mr. Perella, Perella Weinberg Partners, abruptly reversed course. In a terse statement issued shortly before 6 p.m. Thursday, Perella Weinberg Partners announced it would accept the government’s terms.
It was too late.
HA! Don't fuck with Obama fools...when are they going to learn. They would have had a decent deal if they went with the government offer...but no, they wanted to liquidate Chrysler and make alot more. Well, their greed is backfiring and the president is going to steamroll right over them!
And what is the chance of the hedge fund managers getting their money:
Even those involved in the negotiations see little upside in fighting. "There’s zero chance this group will be able to get anything more in bankruptcy court given that 90 percent of the lenders are lined up against them," said a hedge fund manager who owns about $10 million of Chrysler’s secured debt and voted for the government’s proposal.
In other words, fat chance!