Court asked to stop Chrysler sale [Obama steals pension funds from teachers and police]

BBC ^ | June 7, 2009

[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.

[Gaffer]

They now have "skin in the game"

I love it.

[tommyboy]

Obama characterized them as greedy speculators who thought they should get more than everyone else.

[this_ol_patriot]

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?

[Recon Dad]

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.)

[Puddleglum]

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.

[Vaduz]

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.

[PSYCHO-FREEP]

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!

[R. Scott]

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.

[Beagle8U]

I wonder if there is a way to give the cops their pension money back but still screw over the teachers union?

[NoControllingLegalAuthority]

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

[Son House]

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

[Venturer]

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.

[Rome2000]

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.

[PSYCHO-FREEP]

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.

[RU88]

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.

[johniegrad]

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.

[freeangel]

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.

[Puddleglum]

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.

[johniegrad]

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