BUSINESS
05/31/2009 05:12 am ET Updated May 25, 2011

Obama Blasts Hedge Funds Over Chrysler Bankruptcy Holdout

WASHINGTON (Dow Jones)--President Barack Obama sharply criticized the hedge funds and other lenders that rejected Chrysler LLC's proposed debt reduction deal, but said the beleaguered auto maker is in position to emerge from bankruptcy in a stronger, more competitive position.

"While many stakeholders made sacrifices and worked constructively, I have to tell you some did not," Obama said Thursday in remarks at the White House. "In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout. They were hoping that everybody else would make sacrifices and they would have to make none."

Read more on Dow Jones Newswire