When you buy corporate bonds, you enter into a contract that binds the company and the investor in a debt obligation. The investor gives the firm money, in exchange for principal and interest payments. In the Chrysler banruptcy proceedings, there exists a group of minority bondholders representing about 30% of the lenders that are refusing to give in to White House pressures.

This morning on the Frank Beckmann show, Frank interviewed Tom Lauria, the bankruptcy attorney at White & Case,who represents a group of lenders that object to the Chrysler sale and the terms as set forth by the Federal Government. This group claims contractual obligations of first payment of their loans, however, Obama has publicly stated that they should accept the concessions as the rest of the lenders have.

Lauria states: "One of my clients was directly threatened by the White House. Uh... and in essence compelled to withdraw it's opposition to the deal under threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight."

That client is Perella Weinberg.

The President of the United States of America has pressured private individuals, investors, to forgo their contractual obligations even though these people have the legal right to withhold capitulation. The constitution protects private interest, property and contract. The court system provides due process for working claims out on either side. What is highly disturbing is the blago-esque tactics engaged by the White House to attempt and threaten these parties into relinquishing their constitutionally protected rights.

The Executive branch seems to be trying to meld with the Judicial branch in this case and significant attention must be made by major media outlets to out this clear violation of "separation of powers". The press must be the voice of the people that investigates and questions those in power, commercially and federally.

About the Author

Michael Bordash

Chief