Quote:
Originally Posted by Villages Kahuna
I don't think it's just because I'm a retired banker/lender that this plan doesn't seem very fair to me. Is it "fair" that a UAW retiree who worked all his life with the expectation of promised pension and benefits be required to take a haircut on those benefits even though he had nothing to do with the sad financial condition of his former employer? No, not really. But is it any less fair that a lender who made a secured loan to Chrysler with the expectation that the bankruptcy law protected their position in the pecking order of creditors, only to find that the government made their credit and security agreements not worth the paper they're written on--before the question of their position in the bankruptcy is even presented to a judge?
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One of the talking heads on CNBC last week(not sure who) made the statement that "Secured does not mean guaranteed."
I think the Hedge Funds were aware of the risk.