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.
The latest Rasmussen Reports that 45% now trust the GOP more to handle economic issues, while 39% trust Democrats more.
Justice Ginsburg, atta girl! I never thought I'd see a left leaning judge go against the wishes of Obama. Good for you! Maybe even the left leaning side of the bench is getting tired of Barry and his shenanigans.
Its pathetic that people will argue a situation before learning facts.
“If once the people become inattentive to the public affairs, you and I, and Congress and Assemblies, Judges and Governors, shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions.” – Thomas Jefferson
Bondholders are creditors, not stockholders. The greater issue is the bond/stock market. If we cannot rely on the government to protect the interests of its citizens, then there is a reduced amount of confidence in the market. Loss of confidence in the market will result in lower stock prices and increased unemployment.
Chrysler got itself into this mess. Chrysler needs to file bankruptcy under the same rules and regulations that everybody else (mom/pop shops, etc....).
Besides, these are pension funds, not fat cat, rich investors who brought the lawsuit.
The country is being stolen away while most Americans don't follow what's going on, believe their left leaning news, or believe anything their demigod Obama says. Look at the details of the Chrysler and GM deal, the union get roughly 85% on the dollar for what they are owed, the government approximately 75% percent, and the secured creditors (i.e. many of ordinary American's pensions) get 29%. Under contract law, secured creditors are first. If this goes through as is, they've turned contract law into the wild west. No business deal, employment contract, or government obligation would be safe. And foreign investment will come to a trickle. Oh yeah, one other thing, after bankruptcy there's no guarantee these companies will succeed. They'll be owned by the unions after all!
The deal needs to be more equitable to the pension fund investors.
The Supreme Court shouldn't get Obama mad at them.
Obama isn't a King. I know he thinks the US should apologize for everything...even for the US constitution. What a joke of a president. "Change you can believe in" . I didn't know Obama mean Democracy! O-Fraud!
Libs, get a job and an education. Govt. won't save you from your laziness.
GOP says If your a muslim your a terrorist. The End! June 9th, 2009 5:11 pm ET
Everyone loves mentioning the constitution on here, and yet you ignored it for the last eight years.
In a word, baloney. There has not been to date a president who has ridden roughshod over everything and everyone in his path as has this one. Nor has there been a power grab from that office quite so rapid and blatant. This is a good move on the part of SCOTUS; it at least means that someone is going to look at whether or not it deserves further review and ruling.
I am glad they put a halt to this, I am also concerned more people have not been outraged by how this Administration is taking over every aspect of our lives, totally ignoring the Constitution!!
Why is Chrysler being forced to sell to a company in Italy? I thought Mr. Obama said he would make it difficult on companies who did move their business to other countries.
Is this why Mr. Obama is naming all these Czars? They get no oversight from either the Judicial or Legislative Branches of our country!!!!
What happened to all his "Transparency"? What a joke.
Oh yeah, when everything starts going down the tubes don't blame it on Pres. Bush, look back and see who caused the mortgage crisis. And after Pelosi took over as Speaker we started this downhill slide.
Someone needs to drug test that whacko!!!
Justice Ginsburg, get OUT of the business of legislating deals. If this continues no one will win, especially the fortunate few Chrysler employees who remain. Is it worth it for Chrysler to go down entirely or just a small bit to satisfy some greedy investors?
Where were you when Bush was using the constitution for toilet paper? How is Obama destroying the constitution (I'm admitting that I am an Obama supporter so any anti-Obama posters don't have to bother with the usual "socialist drivel")? I feel much better about the direction of our country in the first several months of Obama's administration than I did in the last eight years of Bush's. What's wrong with Chrysler being bought by Fiat? Oh, that's right, American made cars. The area people are overlooking is that jobs might be saved and/or even created. I, personally, believe that the auto industry should eliminate certain brands of cars i.e. Hummer, Range Rover and so forth. The auto industry should focus on vehicles that are fuel efficient. Here's another idea: take the plants that were shut down, referbish them, and use them to make these fuel efficient vehicles or use them to manufacture in other areas like Airplanes.
No, No, No!
They are in trouble. Let all the employees be laid off and let their families starve. Hopefully they die. As a republican I object to anything that could help these people. We are a nation that should be proud to screw over the majority of our citizens. We need a government that does nothing, except complain! Please don't elect democrats next election, they work and get things done for the people. We don't want those kind of people in government. We need people that torture, start illegal wars and can't win the wars once they start them. We need people like Bush and Cheney back in office so we can fail at EVERYTHING!
STOP the OBAMA TRAIN of
Usurpation of Bankruptcy Laws and others;
Treasury Dept. Seizure of Re-paid Bail Out Money;
Executive Appointments of Unconfirmed "Czars;
Increasing the Size of Federal Gov't Payroll by 35%;
Re-Distribution of Wealth thru Distribution of Tax Money Collected to Social Groups ;
Government Run Health Care Reform;
Acknowledgement of Islam as a Global Political Force;
Denial of USA Judeo-Christian Historical References.
wouldn't chrysler lose more money as well as the investors if the company liquidates its assests? it be better for another company to buy them out then to lose more money through liquidation.
f you buy bonds in a company and it goes into bankruptcy there are RULES AND LAWS that apply and have to be followed.
You can not just make it up as you go.
You have a BOND with that company and CONTRACT that must be observed. The FINE PRINT that can not simply be ALTERED at the whim of a politician ANY POLITICIAN.
Bankruptcy has RULES that are followed and are backed up by LAWS.
It could put the whole confidence of contracts into doubt.
THAT'S WHY CONTRACT LAW IS PART OF THE CONSTITUTION
for all those who cite the Bush administration for justification for this administration You don't excuse bad behavior by citing previous bad behavior)
They bought the bonds at 43-cents, so what is the investment firms' problem? Managerial incompetence. They thought they were buying a "deal"–but they weren't that bright. Would there be a lawsuit if they had bought the bonds at 15-cents? So, should they then be required to pay an additional amount (14-cents? or 71-cents? Don't others also have the right to be "made whole"? Or not?)? They want to be "made whole" on their investment–so let them pay for the losses others have realized on their profitable holdings (to make others "whole"–just as they desire).
Application of the law to everyone equally separates the US from the rest of the world. It is the right of every American to appeal to the highest cort in the land to seek justice under the law of the land. no hidden deals, no secret meetings.
What everyone is failing to notice is that since this ecomonic crisis the basis of law has been erroded away. (Contracted bonuses, Banking laws, bankruptcy laws) If we do not follow our own laws what will the rest of the world think and will they want to do business with us?
I think not. And that is what the real nightmare is.
Why worry, Obama will just thrown another trillion the U.S. doesn't have at this problem if Fiat doesn't buy Chrysler. Better yet, sell to China, they own the U.S. now anyway.
To all those who think Fiat is buying anything are dead wrong.
The govt is PAYING Fiat to be part of the new company being set up that replaces Chrysler.
Dang it people learn the facts behind this 'so called' bankruptcy!!!!
Let them go bankrupt LEGALLY the way ALL companies go bankrupt.
Its not the end of the world to FOLLOW THE LAW.
To force a bankruptcy that ignores the secured lending laws boarders on felony criminal behavior.
I have no doubt the white house does not want the Suprime Court of the Untied States looking at this.
The court has NEVER taken kindly to the other CO EQUAL branches sticking their noses into their bushiness.
YES YES YES!
Get out of the way – Ginsburg! Obama deemed this worthy therefore all heaven and earth should follow his direction. It doesn't matter if we sacrifice $50 Billion or $100 Billion... there are faaaaamilies involved.
Granted – we could give every auto-worker $5 milion EACH and still come out cheaper than this government power-grab... but Obama wants it... so we must make it happen!!
Oh, I get it... "we act now or the sky will fall!!"
Sorry, we bought that line on TARP, Bailout-Palooza and the Spendulous Package. No mas.
Charlie Brown is unwilling to kick your football again.
The sumpreme court is not at your service!!!
It wont matter anyway in 2010 and 2012 the conservative movement is back from the dead..
case in point 2 nys dems switched parties ..nys in now going red!!
There is only one consideration to be made. How much is fiat going to pay the american taxpayers? All other points of view are moot. We are bleeding cash faster than obama can throw it away on rediculuos pork filled policies and there is no end in sight. The wall st banks are making a fortune with our money and throwing a smattering of change back in our faces and all the billions wasted on detroit is gone so again I ask whats in it for us?