More Chrysler Investors Describe Obama Hardball Tactics

The White House is denying allegations made by Thomas Luria, an attorney who formerly represented Chrysler investors in negotiations with the company and the Obama Administration on the recently announced restructuring of the nation's third largest automaker. Luria said that the Administration threatened to use the White House press corps to ruin his client's reputation publicly if the group did not agree to go along with the Administration's proposed deal.

Now, more Chrysler creditors are stepping forward to corroborate Luria's version of events, according to a Business Insider report.

Creditors to Chrysler describe negotiations with the company and the Obama administration as "a farce," saying the administration was bent on forcing their hands using hardball tactics and threats. [...]

The sources...say they were taken aback by the hardball tactics that the Obama administration employed to cajole them into acquiescing to plans to restructure Chrysler. One person described the administration as the most shocking "end justifies the means" group they have ever encountered. Another characterized Obama was "the most dangerous smooth talker on the planet- and I knew Kissinger." Both were voters for Obama in the last election.

One participant in negotiations said that the administration's tactic was to present what one described as a "madman theory of the presidency" in which the President is someone to be feared because he was willing to do anything to get his way. The person said this threat was taken very seriously by his firm.

The new allegations track closely with Luria's. Despite White House denials, President Obama did single out a group of investors for public criticism in his remarks on the Chrysler deal. Obama said that some Chrysler stakeholders did not "work constructively" and were refusing to "make sacrifices," adding, "I do not stand with them."

The allegations of political pressure by the Obama Administration in the Chrysler negotiations are serious and deserving of greater scrutiny by the media and Congress. If a Congressman was accused of similar actions, it would almost certainly be considered an abuse of the power of his office. But because of their single source, the allegations have largely escaped notice by the mainstream press. Now that they have been essentially confirmed by multiple sources, however, the Administration may find itself answering more questions about its arm-twisting negotiating style.

Hat tip: Hot Air.