Was justice served, or is Big Government running amok?
Andrew Leonard May. 08, 2009 | If the showdown between the White House and Chrysler’s dissident hedge fund bondholders was the first round of a prizefight, then Obama just scored a knockout with his first punch. Last Thursday, the president declared that “I don’t stand” with the “speculators … who held out while others were making sacrifices.” One week later, the speculators are running for the hills. The New York Times’ Michael J. de la Merced reports that the group will disband, following the withdrawal of two more high-profile members. The decision to dissolve the unofficial group was made in connection with the decision by OppenheimerFunds and Stairway Capital Management to withdraw, said Glenn M. Kurtz, a White & Case partner representing the bloc. With those two firms pulling out, the so-called Committee of Non-TARP Lenders would hold below 5 percent of Chrysler’s $6.9 billion in secured debt. That would almost certainly eliminate the group’s standing in federal bankruptcy cour
