When President Obama announced his deal to rescue Chrysler, he bludgeoned hedge funds holding senior Chrysler debt as mere "speculators" seeking a government "bailout."
Within weeks, the hedge funds buckled under the withering attack from the White House bully pulpit and threw in the towel.
But now other senior debt holders are attempting to assert their rights - and they're a far more sympathetic group than the much-maligned hedge funds.
Pension funds representing teachers and police officers in Indiana filed to have their claims heard in federal district court yesterday in an attempt to protect their rights as senior secured lenders to Chrysler.
The deal crafted by the Obama White House tramples on the rights of the pension funds creditors by giving a bigger share of the pie to more junior, non-secured parties - like the United Auto Workers.
The argument by Indiana teachers and police officers is the exact same argument made by hedge funds: under long-established bankruptcy law senior debt-holders come first.
Will President Obama take to the podium this morning to berate teachers and police officers?
Don't bet on it.
______________________
Tony Fratto is a CNBC on-air contributor and most recently served as Deputy Assistant to the President and Deputy Press Secretary for the Bush Administration.