"This Call Is Being Recorded For Quality Service"

You would think that, having run an investment firm of his own, the likes of Steve Rattner would realize that many hedge funds, particularly trader-centric firms (and which aren't?) record their calls.  Apparently, that detail escaped him during the Chrysler bankruptcy fiasco.

Zero Hedge has been told that at least one of the firms that were purportedly threatened with dire action by the likes of the IRS, SEC or White House Press Office (Rattner obviously confused the placid Robert Gibbs with Helen Thomas here) if they did not support the administration-backed spoonfeeding of the UAW, has the threats on tape.  Oops.

We didn't buy that Rattner resignation story in the first place, but how sad a state of affairs would it be if an Obama Czar used as the "cover story" for a resignation, allegations of fraud at their private equity fund because the truth was much worse?

If the story is true, it is a very disturbing revelation.  The White House's indignant denials would be total fabrications and it would be interesting to comb through Chrysler bankruptcy testimony to see if anyone perjured themselves.  Lying to a bankruptcy court is serious business.  Or used to be.  But this is one story where the "lie," to paraphrase Nixon, isn't what gets you.  Or shouldn't be.  Far more important is what this would mean for the rule of law (or lack thereof) in the United States.

What good is stamping out crony capitalism exactly if it is replaced with plain old cronyism bolted on to simple thuggery?