U.S. Constitution needs to be preserved and protected against Obama Administration Chicago-style assault
Tom Lauria, an attorney at White & Case (NY & Miami) representing a group of first-lien lenders whose contractual agreement with Chrysler had them receiving a very low rate-of-return in exchange for being first-in-line for 100% compensation in case of a Chrysler bankruptcy-restructuring, has accused the White House, during a May 1st interview by Frank Beckman on WJR talk radio, of threatening one of his lender-clients, Perella Weinber Partners.
The deal being forced upon the group of first-lien lenders by the White House is to take 29%, despite the group’s having already offered to compromise by taking 50% in order to “support the rehabilitation of Chrysler and the pensioneers, retirees and workers at Chrysler,” and “despite the fact that they are under no obligation to do so,” and “contrary to what the President said yesterday (Thursday) in his news conference, that these people … will not ‘give’ to support the effort,” said Lauria.
Lauria asserts that Perella Weinberg Partners “was directly threatened by the White House and in essence [was] compelled to withdraw its opposition to the [29%] deal under the threat that the full force of the White House press corps would destroy its reputation if it continued to fight.” In a separate interview later with ABC News, Lauria identified the White House auto task force leader Steven Rattner as the official making the threat.
Lauria is now going to bat against the White House in a lawsuit “of epic proportions” in Bankruptcy court to fight the “abuse [by the White House] of the bankruptcy laws to coerce [first-lien lenders] to subsidize the rehabilition of Chrysler or the backstop of the obligations to the pensioneers and retirees beyond what they are willing to do voluntarily.” He is committed to ensuring that his lender clients “get what they are entitled to for their investors,” who he says include “pensioneers, teachers’ credit unions, personal retiree accounts, retirement plans, and college endowments.”
Lauria is steadfast in asserting that the Obama Administration is overstepping its Constitutional role and violating its separation-of-powers bounds, by “abrogating” the basic Constitutional right-to-property and right-to-contract, and by attempting to exert a judicial role in the settling of this contention.
Interestingly, Perella Weinberg Partners issued a statement on Sunday denying it had been subjected to any political pressure, saying that it was now in agreement with the White House plan essentially because it was good business, while the White House issued a statement denying any coercion.
Now, I ask … Tom Laurie would really place his career and reputation on the line by uttering a false allegation against the President of the United States and involving one of his own clients … ?
I say that to allow this Executive-Branch muscling to go unchecked would set a dangerous precedent and further erode the rule of constitutional law. This presidential browbeating is further indication that the tone of governance desired by the Obama Administration is that of tyrannical dictatorship.
Click here to hear the 10-minute interview of Tom Laurie.
Mark Levin, of WJR talk radio, giving his incensed two cents: