cabanker

Why did lenders Citigroup (C), Morgan (MS), Goldman (GS) and JPMorgan (JPM) approve Chrysler's $0.29 on the dollar offer while smaller firms held out? Maybe because the gov't left the TARP recipients little choice, confirming "the worst fears of how bailouts of banks would warp the markets."

Once I saw that the "big" bank's settled, I had no doubt that it was due to "political pressure". The individuals running the large banks are all smart people. I seriously doubt that OBama even had to pick up the phone. He had them all out for a meeting a few weeks ago after the AIG bonus scandel and discussed the need to "work together". If they go against the grain on any of the large restructurings (Chrystler, GM..), they'd be cutting off their own lifelines (TARP $, government backed bonds, stress test negotiations...).