Rep. Peters: “This Is not a Serious Offer”

 Washington, D.C. – Congressman Gary Peters, whose Michigan Congressional district is home to Chrysler World Headquarters, released the following statement in response to reports of a counteroffer from Chrysler’s debt holders:

“This is not a serious counteroffer.  These debt holders were offered fair market value for their debt and the banks have responded by asking for a windfall.  It is extremely disappointing that while other stakeholders have agreed to work with President Obama to advance Chrysler’s restructuring, financial institutions that have already taken billions of dollars in taxpayer support are refusing to do the same.  This offer is an affront to taxpayers and the many thousands of Chrysler employees and retirees whose livelihoods hang in the balance of the outcome of these negotiations."

The four major financial institutions holding the vast majority of Chrysler’s secured debt are JP Morgan, Citigroup, Goldman Sachs and Morgan Stanley.  Congressman Peters wrote to the CEOs of these companies on April 1 asking them to negotiate in good faith with Chrysler to reach a mutually beneficial agreement with the automaker.  Today’s counteroffer makes clear they are not doing that. 

To date, these financial institutions have received:

JP Morgan: $25 billion through TARP, $400 million as an AIG counterparty
Citigroup: $25 billion through TARP, $2.3 billion as an AIG counterparty
Goldman Sachs: $10 billion through TARP, $12.9 billion as an AIG counterparty
Morgan Stanley: $10 billion through TARP, $1.2 billion as an AIG counterparty
 

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