Free Markets, Free People

Perella Weinberg


Thugs In The White House?

One of the things I try to do is take a look at stories and decide whether or not there’s enough there to blog about it. And part of that has to do with corroboration. When I first saw the story about the Obama White House allegedly threatening a Chrysler stakeholder during negotiations that eventually broke down, I wondered if perhaps that particular person might have been a little over sensitive or misinterpreted the situation. But it was interesting and something worth watching.

Today comes some corroboration making this a good blog story. Although the story uses anonymous sources, it uses multiple sources, and the reason for the anonymity should be obvious.

Although the focus has so been on allegations that the White House threatened Perella Weinberg, sources familiar with the matter say that other firms felt they were threatened as well. None of the sources would agree to speak except on the condition of anonymity, citing fear of political repercussions.

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. 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 White House has denied the allegation that it threatened Perella Weinberg.

Is this true? Well, at this point, it is more true than it was when Perella Weinberg was the only one reporting it.

Is this good? No. If true, this demonstrates an abuse of power that has no place in government at any level. While we all understand politics isn’t bean-bag, threats to use political power (not legal power, but the power of the bully pulpit and vilification) in this manner are simply unacceptable.

If true.

Again, the more I monitor this and the more I read, the more I believe this may have happened. I’d like to see the anonymous sources step up and identify themselves. Yeah, I know it takes a certain level of courage, but this is one of those “nip it in the bud” moments.

And I’d expect the left to be just as loud in its denunciation of this sort of abuse of power as they were the last 8 years when executive power abuse was a focus of their outrage with the Bush administration.

I assume the reason for their outrage was the alleged abuse, not the politics of the abuser.

Right?

~McQ

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