What Taxpayers Are Getting from GM for Their Billions [Dan Collins]
In a conference call, yesterday, according to NPR, White House spokespeople stated that they don’t want to be in the business of owning most of GM for long. So, even if there emerges a viable GM from the other side of bankruptcy, shares are going to be sold at an enormous loss.
Moreover, it’s been announced that under the new union-succoring management, GM will not be permitted to import cars built in China. So, the bottom line is that taxpayers are in no respect an important consideration, unless they happen to be employed in a UAW shop.
Anybody feeling alienated from the means of production, yet? Where’s my Wingnut Welfare? Trade war? Bring it on.
GM shares fell 22pc to 87 cents yesterday, valuing the group at just $550m against $56bn at its peak in 2000.
Tens of billions of dollars will buy the Treasury a company capitalized at just over half a billion. Super. That ought just about cover Fritz Henderson’s golden parachute.
It’s also going to be interesting to see what the lawyers representing GM and the government get remunerated, considering the salary caps at financial institutions, and all that.
More super: The 31 year old tasked with dismantling GM
Mr. Deese was not the only one favoring the Fiat deal, but his lengthy memorandum on how liquidation would increase Medicaid costs, unemployment insurance and municipal bankruptcies ended the debate. The administration supported the deal, and it seems likely to become a reality on Monday, if a federal judge handling the high-speed bankruptcy proceeding approves the sale of Chryslerâ€™s best assets to the Italian carmaker.
Mr. Deeseâ€™s role is unusual for someone who is neither a formally trained economist nor a business school graduate, and who never spent much time flipping through the endless studies about the future of the American and Japanese auto industries.
Maybe Mr. Deese can tell us who made the Chrysler dealership decisions, and what were the criteria they used?
Terrorism? Political assassination? (h/t topsecretk9)