WASHINGTON (CNN) - The Obama Administration Tuesday urged the Supreme Court to drop the stay which temporarily halted the sale of Chrysler, arguing Fiat alter the deal or walk away if it isn't approved by next week.
"If the sale is not consummated by June 15, there is a substantial possibility that Fiat will abandon the transaction or insist on materially different terms as a condition of its participation," Justice Department lawyers said in a brief filed with the Justices.
"It is also undisputed that Chrysler's condition worsens each day it remains in bankruptcy and that Fiat is aware of that situation," the government said.
"While Chrysler remains in bankruptcy with no confirmed alternative to liquidation, its situation deteriorates," the government argued.
Supreme Court Justice Ruth Bader Ginsburg granted a stay to opponents of the sale who stand to suffer major investment losses if the transaction with Fiat is approved.
Great for the supreme court it's about time they stop Obama from destroying the constitution.
Good! It's high time that this administration learns it can't violate the Constitution just for its own personal gain.
This seems to be an illegal bankruptcy being rushed through so the uaw can own the major share of the company, and who is in the uaw's back pocket?:
I think neither the President or the Supreme Court should be involved – Chrysler is where it is because of Chrysler – and the investors are where they are because they invested in Chrysler –
Can the Supreme Court and the President get the cost of cattle feed down and the prices up? How come I can't get any help?
This whole business is a joke – what is this country coming to?
Bring back Lee Iacocca, he had Chrysler purring like a kitten.... He done the same way back when Ford was on the brink of Bankruptcy...
So what do they have to liquidate,
This shows that the Obama Adminstration does not care for the investors/voters who invested in Chrysler. Remember come election day. Obama and is family enjoy these four years.
What's with these people suing ? Chrysler goes with Fiat and at least the bond holders get something. If the sale it stopped, Chrysler liquidates, and they get nothing. Looks like another Republican lawyer trying to screw up President Obama's attempt to get the USA back on it's feet. Are these lawyers from the same law firm that represents Bad Loser Coleman in Minnesota ?
President Obama needs to quit trying to win support from the UAW for his next election and butt out of the bankruptcy process for Chrysler and GM. Stop trying to screw over the bondholders for the sake of UAW. Let the bankruptcy proceed under the current set of laws.
Treat the secured bond holders fairly. Follow the law in other words. These people were not holding stock.
You can't make up the rules as you go along. Gingsburg is right.
(I'm not a Chrysler or GM bond holder.)
For God's sake! Why in the world is Ginsburg worrying about other than saving this company so that American workers have jobs? I am sooo sick of all the consideration being for the fat cat rich guys while American Workers are losing their jobs right and left! If this sale to Fiat makes work for Americans... that should be the first priority!
What will these investors gain if Chrysler liquidates? Certainly not more money on their investments. If the company becomes profitable after bankruptcy, wouldn't that be a better solution than to lose everything through liquidation.
This quote deserves a response even though it's the wrong commentary section: "There are a HUGE number of voters just waiting for the republicans to make a stand for American values, put politics on the back burner and vote for whats right."
That would be ALL of us. As soon as they drop the charade of being the only ones who behave in a fiscally conservative fashion (hint: they haven't and don't), give up on their trickle-down voodoo tax-cuts-fix-everything-and-the-economy-fizes-itself lie and let go of the wedge-issue-driven social conservatism they use to try to divide up the voting market, basically claiming that, e.g., they'll get the Constitution changed to overturn Roe or prevent gay marriage, we'll know they're once again ready to be a serious, rational, responsible party who is done fooling around trying to establish a permanent stranglehold over the country and act in the best interests of its citizenry...ALL of its citizenry. Despite being a "crazy liberal," I'd welcome that...as fun as it is to watch their antics lately, you'd have to be dearf, dumb and blind to not realize it's damaging to our society to have so many in power behaving so poorly.
I feel for the loosers of chrysler, if the court lifts the stay . but why didn't the court do something about ENRON like take every dime worth of anything that exeutives had when ENRON went down . it was criminal what happened to millions of people. and I was one of them . so we all survived . and it took along time to recover from the loss . so for chrysler . they need to move forward with the bankruptcy ..so Judges let it go .
ITS THE GOOD OF THE MANY THAT OUT WEIGHTS THAT OF THE FEW
Obama just can't wait for the gov to take controll of Chrysler and everything else in this country.
Yes Obama must be allowed to sell out America to his foreign supporters. Yes We Can.
What major investment losses?? They stand to lose 5 million dollars according to all reports. Sorry 5 million isn't worth losing hundreds of thousands of jobs! It's simply a case of outright greed!! Two levels of the American Justice system have already declared the deal legal!! Every other stake holder, every single one, has already made concessions on a huge scale, and these "people" are holding out for 14 cents on the dollar. Pathetic GREED!! It's sad!
The court should turn this over. TARP is funded by law and that law is specific in its use (no auto co's). Also, contract law states that the secured debt holders own all those assets. It is not up to the treasury dept to decide who owns it. Its the law. If congress or the white house want the law to be different then they need to pass new laws or revise the old ones. There is a reason we have a process to create and pass laws in the first place. To circumvent that is in direct violation of our constitution and it opens the door for any president or congress to do as they please outside of the law so long as the other one doesn't complain.
ie.., Obama wants the Supreme Court to ignore the Constitution.
Fiat will effectively be getting 20 billion for free. Or like their CEO said yesterday.., we will NOT walk away from this deal!
I'm not worth anything either, anyone want to sell me? Obama will pay you billions!!
US == Obama administration??
Any business deal that is needed to be transacted this quickly means that something doesn't smell right, and should be a warning in and of itself.
Since when did the White House become a corporate power broker?
This is so sad. The liberals cooked up this deal to sell Chrysler to Fiat, give a good chunk to the useless UAW, force small business owners out of business and possibly into banktuptcy and now another liberal is putting the brakes on the whole deal. We are doomed with this worthless Prez and his henchmen running the country! God help us!
Obama shook his fist and threatened the "speculators" who dared oppose his illegal plan, which would favor the union slime over the secured bondholders. Thank goodness the Indiana public pension funds stood up to be counted. The bondholders should get 100 cents on the dollar before the UAW gofers get dollar one. Thank goodness for the Supreme Court, which it is hoped will enforce the law. What happened to the United States Court of Appeals for the Second Circuit, which should have ruled against the Obama plan last week but instead took a dive.
Everyone loves mentioning the constitution on here, and yet you ignored it for the last eight years.
Let the adults run the country from now on, go do ome hunting with Cheney and Palin. We had a taste of how Republicans run the country, and you guys blew it big time.
PS: did you guys find bin Laden yet?