While focusing much of his talk on ratings companies and a bet his firm has made against Moody’s Corp., Einhorn also attacked President Barack Obama’s policy toward bondholders and the danger it poses to creditors of all stripes.
The president, Einhorn said, had introduced a “quixotic idea” into credit markets: “that creditor recoveries in troubled situations can be determined by an arbitrary sense of shared sacrifice rather than legal agreements and long- established prior practice.”
via No Bond Safe From Obama’s ‘Shared-Sacrifice’ Plan: David Reilly - Bloomberg.com.
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