Friday, May 1, 2009

Lawyer: White House Threatened to Sic "Press Corp" on Recalcitrant Chrysler Creditor

An attorney representing some Chrysler bond holders this morning alleged that the Obama White House threatened to bring “the full force of the White House press corp” down on a creditor if it continued to resist the terms of Thursday’s government-engineered Chrysler bankruptcy.
Thomas Lauria, a lawyer at White & Case in New York, made the accusation in an interview on Detroit radio station WJR’s “Frank Beckman Show.”
“One of my clients was directly threatened by the white house and compelled to withdraw its opposition…” Lauria said.
“It’s not standing on this side of the fence opposing the President of the United States. People have asked me who I represent and…that’s a moving target.”
White & Case is handling some of the creditors in the Chrysler case.
The client, Perella Weinberg Partners, was one of about 20 firms who initially planned to contest the White House plan for Chrysler.
Perella Wienberg backed off yesterday.
Is Lauria saying that the White House is that confident of its control of the press? Imagine the threat to free enterprise that would represent.

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