Looks like some Indiana pension funds are headed to the Supreme court after Appeals Court Refuses to Block Chrysler’s Sale of Chrysler to Fiat.
These pension funds are losing their rear ends. They bought $42.5 million of Chrysler debt in July 2008, at 43¢ on the dollar and the Government is giving out 29¢ on the dollar, a or 33% loss and roughly $28.7 million.
What is most interesting in this New York Times article is this in referring to the billions in government money Chrysler has already received, coming from TARP and other bail out funds:
That program “is not a gigantic slush fund,” Glenn Kurtz, a lawyer for the funds, said Friday.
A lawyer for the government responded that the Treasury Department was given wide latitude by Congress to decide how to spend the bailout money.
I guess the Appeals court decided the TARP money is a slush fund since they ruled against the Pension Plaintiffs.