Jake Tapper, one of the few reporters covering the White House who you could trust to actually ask the tough questions, is reporting that the White House denies the claims of the attorney who claimed his client was threatened with the press:

A leading bankruptcy attorney representing hedge funds and money managers told ABC News Saturday that Steve Rattner, the leader of the Obama administration’s Auto Industry Task Force, threatened one of the firms, an investment bank, that if it continued to oppose the administration’s Chrysler bankruptcy plan, the White House would use the White House press corps to destroy its reputation.
The White House said the story was false.
“The charge is completely untrue,” said White House deputy press secretary Bill Burton, “and there’s obviously no evidence to suggest that this happened in any way.”

Well, that’s an interesting way to deny the charge: there’s no evidence. Sounds a little specious to me.
So, do we believe the Obama administration or a lawyer? Hmmm…decisions, decisions.