Skip to comments.Court asked to stop Chrysler sale [Obama steals pension funds from teachers and police]
Posted on 06/07/2009 2:50:19 AM PDT by grundle
Pension funds opposed to Chrysler's sale to Fiat have asked the US Supreme Court to block the deal immediately.
Three Indiana state pension and construction funds filed papers at the court on Sunday calling for the sale to be halted so they can pursue an appeal.
It comes after a US appeals court approved Chrysler's sale to a group led by Fiat, a union-aligned trust and the US and Canadian governments.
Chrysler entered bankruptcy protection in April after falling vehicle sales.
US carmakers have suffered from a massive slump in sales during the recession.
The US government has backed its sale to the Fiat-led consortium, which would see it emerge from bankruptcy.
Fiat would control 20% of Chrysler, while 68% would be owned by a union trust, and the two governments would share 12%.
However, the pension funds, which hold about $42m (£26.3m) of Chrysler's $6.9bn in secured loans, are opposed to the sale.
They say it inverts usual bankruptcy practice and unlawfully rewards unsecured creditors, such as the union, ahead of secured lenders.
The emergency legal request from the Indiana State Police Pension Fund, the Indiana Teacher's Retirement Fund and the state's Major Moves Construction Fund goes before Justice Ruth Bader Ginsburg.
The judge can act on her own or refer the matter to the full court, when a vote from five of the nine Supreme Court members would be needed to put the Chrysler sale on hold.
If the sale is put on hold by the court, the Indiana funds would then pursue a full appeal.
If the deal is not completed by 15 June then Fiat, which is not paying anything for its 20% stake, has the option of pulling out.
(Excerpt) Read more at news.bbc.co.uk ...
I love it.
I will optimistically state that Ginsburg or really, her clerks, will move this to the full court for review. It will be the beginning of the end for Obama.
The US government has backed its sale to the Fiat-led consortium,Suprise guess obama isn’t happy with the take over of AIG,banks and two car companies greed is going to bite obama in the ass.
Not only that, he has been caught in countless lies in most all of his speeches to the American people.
The SRM should be held criminally liable and Obama should be impeached for all that he has done to this country in such a short while. If not, it will only get much worse and he will turn this country upside down without hope of repair.
THIS IS GETTING BEYOND SERIOUS FOLKS!
Oama alienating a teachers union?
Now, if hed do the same to the NEA maybe our schools would again get into the business of teaching and not indoctrinating.
I didn’t realize Fiat was receiving 20% of Chrysler without investing a dime. We are living under an absolute dictatorship.
Yep, Øbama’s economic damage is exceeding the worst case scenario
This take-over of the automobile companies is only the beginning. The cause of all these bankruptcies is easily tracked down.
Had the Congress allowed drilling, in fact had they insisted on it, we would have enough cheap energy right here in the United States to supply us. Build a new refinery and refine the product. The car companies are being ruined by the collapse of cheap energy and the confusion on what to buy.
This whole recession can be laid on efforts by our government to force a new green energy on us, when there was nothing wrong with the old one except inept running of it.
These nitwits don't realize that the "Law" in a dictatorship is whatever the dictator says it is.
They haven't got a chance of stopping this.
If anyone is wondering at all, why Oil and Gold prices are rapidly rising, look no further. In fact, if you can, get busy and start buying commodities yourself, as fast as you can! Then, find a place outside this country to keep it safe, because they will surely begin confiscating privately owned commodities.
When I read this the first thing that came to my mind was the shameful policies of FDR when after a some adverse rulings from the Supremes decided to try and pack the court with his cronies. Sotomayor will be the first of many in the Obomba legacy that will continue to haunt this great country for many years to come.
No. I agree with Recon Dad. All these auto transactions and bailouts are payback to the unions for support during the election in the same way that any Chicago machine politician pays back his supporters. Therefore, because it is unions at risk, in this case the teachers' unions, he will arrange a bailout for them because of their support.
I could be wrong but to let the teachers go down on this would be inconsistent with his political upbringing. He is just like any other Chicago thug politician.
Wow! The headlines should read “Greedy Teachers Union Opposes Greedy Auto Union” I guess this is another issue 0 didn’t think through, but I hope it swallows eveyone involved.
I hope the rule of law prevails and that the bondholders - whatever pension they represent - get a real bankruptcy proceeding. They may be teachers this time, but I want the same rule of law to apply to any/all of us, and I am optimistic that the SC will recognize this.
I DO believe the auto bailouts have been skewed heavily toward the UAW for the reasons you cited.
If my optimism is misplaced and the SC does not act, then we really do have a de facto dictatorship, I am afraid.
I am on your side in this one but from everything I am seeing.......I dunno.
Thanks for telling me about Obama referring to the teachers and police officers as “greedy speculators.”
The teachers, by a big majority, voted for him also the teacher’s union[s] supported him. They deserve what ever he does to them. As far as the police go, I don’t know enough about how they voted to comment.
For 10 years I worked alongside unionists
Their mantra was that anything that screwed the company was good for the union
No doubt the unionists at Chrysler and GM believed the same thing
Now that they have screwed the company (but good) they wonder where their jobs went
It is immoral that Zero bailed these people out of anything and it burns me to no end that my grandkids will be supporting the retirement of union people who retired at the age of 45
This is only one teacher's union from on state. Odds are that a majority of states are in this same situation. Are we going to have to bail them all out? It would take trillions more.
Personally, I think he will try to payback as many of his supporters as he can with taxpayer monies. There will be places where he won’t have to however. For instance, if the teachers pension funds in California were in question, I don’t think he would intervene because he doesn’t need them to carry California in the future.
Given the slavish proclivities of our state run media, why should you be surprised at this convenient omission?
We are living under an absolute dictatorship.
Not quite yet. But soon. It just takes a few more building blocks and then finish the job with the economic crash.
One of the building blocks can be cemented in if Ginsburg refuses the case, essentially upholding the judicial legality of outright government abrogation of legal contracts and theft of private property.
Which is exactly why I pulled everything I had in the market out in October of last year when I determined this socialist was going to win. I really wish I'd done it 12 months ago.
Ever notice how extemely, eggregiously large heists are usually the result of 'inside jobs'? Well, I have come to the conclusion that the DEMS have destroyed this country by 'inside jobs' on the Executive, Legislative and Judicial branches. It is truly a sad demise for this country. Largesse and honest inequity to extreme proportions are the only thing coming. Think French Revolution where the maniacs are now in charge. Don't even think that the most vile, sadistic, treacherous, and unlikely events as have been seen on this earth aren't possible in this country. It is coming.
Thank you for the link.