“We are holding this hearing to examine a number of actions taken by the Obama administration where they have sided with big banks, deadbeat foreign governments and big labor at the expense of public pension funds, 401(k) plans, university endowments, mutual funds, insurance companies, foundations and municipal entities,” Subcommittee Chairman Scott Garrett (R-N.J.) said. “Investor protection is tantamount to ensuring healthy and well-functioning capital markets. The administration should be working to protect investors, not harm them
In 2001, Argentina defaulted on its debt and filed an appeal of an injunction that would prevent it from paying bondholders that participated in restructuring before it paid holdout investors. The U.S. Department of Justice filed an amicus brief in support of Argentina, Thomson Reuters reports.
Additionally, a $25 billion nationwide mortgage settlement between state governments and the federal government left many investors outraged. The deal extended credit to banks for reducing mortgage principals owned not by the banks but by mortgage-backed securities investors.
Investors were also outraged by Chrysler’s bankruptcy and subsequent bailout by the Obama administration.