Government Motors: Treasury to take 70% stake in the new GM….


Warning NYTimes, Highlights include:

…The day-to-day running of the firm, this person said, would be left to professional managers, and the government would not be involved in decisions about closing factories, renegotiating contracts or selecting product lines.

But that may not be so easy. Already, members of Congress have been calling Steven Rattner and Ron Bloom, who are running the auto task force, to complain about the closing of Chrysler and G.M. dealerships in their states.

As factories close or move, those calls most likely will grow more intense, in part because members of Congress will have a hard time explaining to constituents how the government could own 70 percent of the company and still have no control over deciding which factories stay open and which are closed.

Mr. Obama’s representatives may also feel compelled to weigh in on the design of new models to achieve his goals for greater fuel efficiency and lower emissions….

They MAY feel compelled to mess with the design?gee ya think?! they WILL mess with the designs, Are you ready for your homermobile?!


What about the bondholders?

…Despite their protests, some legal experts say that G.M. and the government are likely to prevail in bankruptcy court because the company would not be alive today without its loans.

“It is unfair treatment, and I think the bondholders are being discriminated against,” said Evan D. Flaschen, chairman of the financial restructuring group at the law firm Bracewell & Giuliani. “But the government has also put in more than $15 billion into G.M., so in a real sense it’s theirs to allocate.”..

*Video by martint666


May 27, 2009. Tags: , , , , , , . Big 3, Economy, Entertainment, Motown, Music, Obama Administration, Politics, Popular Culture, TARP, Uncategorized, Unemployment Statistics.

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