The 'Greedy' Speak

Found on The Business Insider, a communication from the non-TARP debt holders of Chrysler.

The TARP bondholders have some incentive for going along with what the gummint *ahem* suggests. Those debt holders that aren't on the public dole, however, have been frozen out of negotiations regarding debt relief for Chrysler. I especially find these lines informative from their communique:

As of last night’s deadline, we were part of a group of approximately 20 relatively small organizations; we represent many of the country’s teachers unions, major pension and retirement plans and school endowments who have invested through us in senior secured loans to Chrysler. Combined, these loans total about $1 billion. None of us have taken a dime in TARP money.

[SNIP]

Under long recognized legal and business principles, junior creditors are ordinarily not entitled to anything until senior secured creditors like our investors are repaid in full. Nevertheless, to facilitate Chrysler’s rehabilitation, we offered to take a 40% haircut even though some groups lower down in the legal priority chain in Chrysler debt were being given recoveries of up to 50% or more and being allowed to take out billions of dollars.

Greedy indeed - they end up losing. And the rule of law is being subverted in this process.