In this case, it’s Cerberus, the secretive (aren’t they all) hedge fund that bought Chrysler, and then took it into bankruptcy.

As I noted at the time, they bought Chrysler because they were hoping to buy it on the cheap, and when the likely purchaser, General Motors, turned out to be in almost as bad a shape as
Chrysler, they took a bath, as well as taking a hit on their investment in GMAC.

So now, investors are clamoring for the exits, (also here) because even though Cerberus is chock full of former government insiders, they do not believe that they will make money with the firm.

It’s clear that they bet on government bailouts that would be extremely favorable to them, and they were not, and now they are experiencing a run on the bank.