March 5, 2013 at 1:00 am
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Payne: Woodward and Chrysler meet Obama's 'Chicago Way'- <!-- Byline -->
- By Henry Payne
The Media Church of the Holy Obama quickly excommunicated Watergate icon and journalist Bob Woodward last week when he suggested the Obama administration threatened him after he revealed the anti-sequester White House had originated the sequester idea. But Woodward's accusation rings true because it echoes other accounts of the ex-Illinois senator's "Chicago Way" tactics.
Exhibit A is the 2009 Detroit Auto Bailout and the administration's threats against Chrysler bondholders that refused to knuckle under to Obama's plot to favor his Big Labor cronies.
The administration has treated obstacles to its agenda with ruthless tactics. In April 2009, that agenda was to hand an outsized, 55 percent majority interest of embattled Chrysler to the United Auto Workers in a government-orchestrated bankruptcy. But by law secured creditors are first in line in bankruptcy, and bondholders — representing their working-class pension clients — refused to accept Obama's unfair deal for a measly 29 cents on their investment dollar.
Send in the muscle.
"One of my clients was directly threatened by the White House and in essence compelled to withdraw its 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," said Tom Lauria, lawyer for Perella Weinberg investment firm, on Frank Beckmann's Detroit radio program. Lauria later said the brass knuckles belonged to White House Auto Task Force leader Steve Rattner. Lauria's account was disturbing, too, in revealing the confidence that the White House has in its press allies to aid Obama's agenda. Sure enough, Washington reporters quickly attacked the messenger. "(Lauria's) charge is completely untrue," White House deputy press secretary Bill Burton told ABC News' Jake Tapper, "and there's obviously no evidence to suggest that this happened in any way." Actually, there was plenty of evidence. Jim Carney of Business Insider corroborated Lauria's account, reporting that "sources familiar with the matter say that other firms felt they were threatened as well." The White House escalated the threats when Obama himself singled out creditors for obstruction, accusing them of being "speculators" preying on an American auto icon — bullying words from a man with the IRS and SEC at his disposal.
"The sources, who represent creditors to Chrysler, say they were taken aback by the hardball tactics that the Obama administration employed to cajole them into acquiescing to plans to restructure Chrysler," continued the Insider. "One person described the administration as the most shocking 'end justifies the means' group they have ever encountered."
Woodward notes the chilling effect threats have on journalists who need access to White House sources. The administration's Wall Street bullying was no less chilling. Michael Barone called the auto task force tactics "gangster government." Financial analyst Glenn Reynolds called it "waterboarding bondholders."
"The president's attempted diktat takes money from bondholders and gives it to a labor union that delivers money and votes for him," wrote Cliff Asness, a managing partner at AQR Capital Management. "Shaking down lenders for the benefit of political donors is recycled corruption and abuse of power."
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Obama's Chicago Tactics
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Originally Posted by gabosaurus
