Rumours flying thick and fast on the Internet say that Cerberus is looking to sue Daimler for misleading them into believing that Chrysler has a future. Strange indeed, if there's any semblance of credibility to these rumours.

Number one, Chrysler still has a future (bleak as it may be). If Cerberus can't turn it around with its deep pockets and 'commitment' to restoring profitability, something is not in place. Giving up so soon doesn't seem to make too much sense at all.

Number two, even if Chrysler has no future, it is unlikely Daimler will earn any raps. Caveat Emptor is what business law courses teach in the very first session. As a private equity firm, Cerberus has most probably undertaken a huge number of due diligences and valuations. In spite of their capability and resources, if they've screwed up, then their investors should be very worried.

On the other hand, if Daimler has indeed forged financial statements to add roses to Chrysler's sheets, things are going to get rough for them as well. On the back of recent corruption stories coming to light in Germany, that doesn't seem to be such an unlikely possibility then. (Successful journalists and irresponsible generalizations go hand in hand).