State treasurer: Chrysler deal caused fund losses-WEB ONLY

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Indiana’s treasurer said
he won’t invest more state money in the corporate debt of companies
receiving federal cash after two funds he controls were stung by more
than $1 million in combined losses in the Chrysler bankruptcy.

Treasurer
Richard Mourdock said today the Indiana State Police Pension Fund lost
$147,400 and the Major Moves Construction Fund lost $896,000.

Mourdock
said the administration of President Barack Obama put the financial
interest of other parties ahead of secured lenders such as the state,
even though secured creditors are typically first to get paid in a
bankruptcy. Mourdock says the move was “fundamentally wrong.”

Obama had urged Chrysler’s bondholders to make sacrifices to help the automaker.

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