I've talked extensively about how on July 6th GM dealers received a letter from the General Motors National Dealer Council urging them to sign a sort of petition to Congress immediately; no later than 5:00 p.m. the very next day, saying that they opposed passage of the bill.
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I am a co-sponsor of H.R. 2743 along with 241 other Members of Congress. If passed, it would essentially reinstate the economic and contract rights of dealers who were arbitrarily dropped by Chrysler and General Motors during their respective restructurings. In essence, H.R. 2473 makes these dealers whole instead of allowing their livelihoods to be taken from them with no legal recourse and no financial compensation.
According to TradingMarkets.com, the Obama Administration is urging opposition to this bill, too. The White House has said that reversing the closings would set a "dangerous precedent, potentially raising legal concerns, to intervene into a closed judicial bankruptcy proceeding on behalf of one particular group at this point."
With all due respect: Tell that to the retired teachers and police officers in Indiana whose pension funds were decimated when the Obama car czar leapfrogged the unsecured debts of the United Auto Workers ahead of the secured debts of these legitimate bondholders.
The deal crafted by the Obama White House to quickly move along the restructing of Chrysler and GM trampled on the rights of pension fund creditors by giving a bigger share of the pie to more junior, non-secured parties - like the UAW. Now, that’s a very ugly precedent for future investors.
Apparently, the Administration observes legal precedents only if doing so moves forward their priorities and agenda.
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