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Court asked to stop Chrysler sale [Obama steals pension funds from teachers and police]
BBC ^ | June 7, 2009

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 ...


TOPICS: Business/Economy; Government; Miscellaneous
KEYWORDS: automakers; bho44; chrysler; pensionfunds

1 posted on 06/07/2009 2:50:19 AM PDT by grundle
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To: grundle
They now have "skin in the game"

I love it.

2 posted on 06/07/2009 2:51:44 AM PDT by Gaffer
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To: Gaffer
Obama characterized them as greedy speculators who thought they should get more than everyone else.
3 posted on 06/07/2009 3:04:51 AM PDT by tommyboy
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To: Gaffer
I don't know a lot about this stuff but I guess this is a “street mugging” business model,where the government can come in and pirate the funds out a business and tell the shareholders to go screw themselves. Who would want to invest in American business if at anytime their investment can be confiscated and given to someone else?
4 posted on 06/07/2009 3:06:34 AM PDT by this_ol_patriot (I saw manbearpig and all I got was this lousy tagline.)
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To: tommyboy
The next step in this theft is for Zero to step in again and make the pension funds whole, end of story. (they're teachers so you pretty much know how this is going to end.)
5 posted on 06/07/2009 3:11:16 AM PDT by Recon Dad (Cogito cogito ergo cogito sum - MARSOC DAD)
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To: grundle

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.


6 posted on 06/07/2009 3:14:56 AM PDT by Puddleglum (http://www.phawkins.com)
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To: grundle

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.


7 posted on 06/07/2009 3:55:11 AM PDT by Vaduz
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To: grundle
All of which Obama has done directly violate the Constitution. His “Czars”, making executive orders and decisions like this without following the established process, outwardly showing preference to small groups of partisans who gave him large amounts of campaign money, etc,,,,,; Are ALL IMPEACHABLE offenses!

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!

8 posted on 06/07/2009 4:13:53 AM PDT by PSYCHO-FREEP (Give me LIBERTY or give me an M-24A2!)
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To: grundle

Oama alienating a teacher’s union?
Now, if he’d do the same to the NEA maybe our schools would again get into the business of teaching and not indoctrinating.


9 posted on 06/07/2009 4:16:59 AM PDT by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink)
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To: grundle
I wonder if there is a way to give the cops their pension money back but still screw over the teachers union?
10 posted on 06/07/2009 4:20:54 AM PDT by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: grundle

I didn’t realize Fiat was receiving 20% of Chrysler without investing a dime. We are living under an absolute dictatorship.


11 posted on 06/07/2009 4:23:02 AM PDT by NoControllingLegalAuthority
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To: PSYCHO-FREEP

Yep, Øbama’s economic damage is exceeding the worst case scenario


12 posted on 06/07/2009 4:23:48 AM PDT by Son House (Make A Bad Situation Worse, Raise Taxes, Increase Government Spending, Thanks Ă˜bama)
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To: grundle

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.


13 posted on 06/07/2009 4:25:08 AM PDT by Venturer
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To: grundle
They say it inverts usual bankruptcy practice and unlawfully rewards unsecured creditors, such as the union, ahead of secured lenders.

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.

14 posted on 06/07/2009 4:27:48 AM PDT by Rome2000 (Peace is not an option)
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To: Son House
What really sucks is, that the Universities are already teaching our students that Keynesianism measures, like “Tiny Tim” Geithner is doing, (Printing Trillions of Dollars of worthless paper, then buying Treasury bonds with it, to give the illusion of a backed currency.) is BRILLIANT and will surely solve the problem!

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.

15 posted on 06/07/2009 4:36:11 AM PDT by PSYCHO-FREEP (Give me LIBERTY or give me an M-24A2!)
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To: grundle

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.


16 posted on 06/07/2009 4:52:49 AM PDT by RU88 (Bow to no man)
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To: Puddleglum; Recon Dad
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.

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.

17 posted on 06/07/2009 4:59:33 AM PDT by johniegrad
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To: grundle

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.


18 posted on 06/07/2009 5:05:31 AM PDT by freeangel ( (free speech is only good until someone else doesn't like what you say))
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To: johniegrad

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.


19 posted on 06/07/2009 5:10:47 AM PDT by Puddleglum (http://www.phawkins.com)
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To: Puddleglum

I am on your side in this one but from everything I am seeing.......I dunno.


20 posted on 06/07/2009 5:12:15 AM PDT by johniegrad
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To: tommyboy

Thanks for telling me about Obama referring to the teachers and police officers as “greedy speculators.”


21 posted on 06/07/2009 5:15:14 AM PDT by grundle
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To: grundle

http://online.wsj.com/article/SB124286497706641485.html


22 posted on 06/07/2009 5:21:41 AM PDT by tommyboy
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To: grundle

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.


23 posted on 06/07/2009 5:22:32 AM PDT by sport
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To: grundle

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


24 posted on 06/07/2009 5:24:53 AM PDT by IncPen (Pitchforks and torches.)
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To: grundle
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.

How does this work? Fiat gets 20% of the company for nothing???!!!

According to this article, Chrysler Appeals Court Won’t Block Asset Sale to Fiat (Update1) , the US Treasury will own 9.9 percent of the new Chrysler, the Canadian government 2.5 percent, a workers health-care trust almost 68 percent and Fiat 20 percent. Later Fiat has an option to increase its stake to 51 percent.

How will Fiat own 51% of Chrysler later?
25 posted on 06/07/2009 5:27:26 AM PDT by Girlene
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To: johniegrad
Therefore, because it is unions at risk, in this case the teachers' unions, he will arrange a bailout for them because of their support.

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.

26 posted on 06/07/2009 6:23:08 AM PDT by randita
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To: grundle
This is Marbury v. Madison stuff.
27 posted on 06/07/2009 6:27:29 AM PDT by Crawdad (If you're in a fair fight, your tactics suck.)
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To: randita

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.


28 posted on 06/07/2009 6:29:05 AM PDT by johniegrad
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To: NoControllingLegalAuthority
I didn’t realize Fiat was receiving 20% of Chrysler without investing a dime.

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.

Comforting, eh?

29 posted on 06/07/2009 7:35:06 AM PDT by Gritty (Socialism's endless appetite for power means there's never enough free pie - James Lewis)
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To: this_ol_patriot
.....,where the government can come in and pirate the funds out a business and tell the shareholders to go screw themselves.....

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.

30 posted on 06/07/2009 9:20:01 AM PDT by Gaffer
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To: Crawdad
Maybe, but that was during a time when I'd hazard to guess that everyone on the SC thought only of themselves as an American and not some hypenated-American.

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.

31 posted on 06/07/2009 9:26:12 AM PDT by Gaffer
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To: tommyboy

Thank you for the link.


32 posted on 06/07/2009 9:47:32 AM PDT by grundle
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