Hedge funds become the villains in Chrysler's ongoing saga


President Obama clearly blamed hedge funds for the collapse of the Chrysler deal, which ultimately forced the company into bankruptcy Thursday. Hedge funds hold about $1 billion of the automaker's debt, which they bought at deep discounts from other investors who wanted out.

In his speech Thursday, Obama said, "In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout. They were hoping that everybody else would make sacrifices, and they would have to make none. Some demanded twice the return that other lenders were getting. I don't stand with them."