A group of activists who have called for a boycott of JP Morgan Chase and other banks that received billions of dollars in federal bailout funds to stay alive but are refusing to help Chrysler survive by restructuring their loans to accept equity instead of cash may have found an ally in Michigan Gov. Jennifer Granholm:
Gov. Jennifer Granholm joined those denouncing creditors of Chrysler LLC for their unwillingness to make concessions on outstanding debts, specifically targeting financial institutions that have accepted loans from the federal government.
Among Chrysler’s chief lenders are JPMorgan Chase, Citibank, Goldman Sachs and Morgan Stanley. They have asked for 40% ownership and a seat on the Chrysler board of directors in exchange for reducing their debt from $6.9 billion to $4.5 billion.
“Who knew that bailing out the banks would mean that they could kill the auto industry,” she told reporters at an unrelated event. She said the livelihoods of thousands of families are in the balance.