Taxpayers Get Hosed in GM Buyback of Treasury Shares

National Legal & Policy Center ^ | December 20, 2012 | Mark Modica

[jazusamo]

Working link:

http://nlpc.org/stories/2012/12/20/gm-buyback-treasury%E2%80%99s-shares-no-panacea

[relictele]

Any more ‘fairness’ and we can all join the soup line.

[Vaduz]

The only reason for the taxpayers’ stake in General Motors was Obama made sure the right wheels got greased.

[Night Hides Not]

How many companies pay less income tax than Warren Buffet's secretary?

GM

GE

Feel free to add to this list.

[jazusamo]

Yep, it seems the only ones who benefited in this fiasco was the UAW. Though Obama has been crowing the bailout was such a success GM is not out of the woods yet.

[Uri’el-2012]

What about GM's owners:

the former bondholders ?

[jazusamo]

This won’t affect them in the least, they’re still screwed.

[FrankR]

GM dipped their corporate finger into the indelible purple ink when they sold out to the unions/government, and it will be quite a while before the ink rubs off.

I’m sure GM thinks that buying it back will reverse their “fortunes” on the market, but I can attest that I will never buy another GM product.

In fact, I’m never going to buy another vehicle made in a UAW shop, period.

Unions have become the Gestappo in obama’s quest for socialism/communism and are the primary impetus that put him in office - both times.

[jazusamo]

I couldn't agree more with you on unions.

With the union debacles in Wisconsin and Michigan recently and Obama being not only being supported by them but meeting numerous times in the WH with that thug Trumka were the last straws for me.

Unions now are not what they were to the worker in the early part of the last century, they're socialist/communist organizations lead by thugs and criminals for the most part supporting socialist/communist politicians.

[Uri’el-2012]

This won’t affect them in the least, they’re still screwed.

I understand that.

It looks like Contract Law has been
destroyed by Holder & Co.

[NonValueAdded]

Channel stuffing is illegal, certainly a SEC violation. Where is the Just Us Department?

[jazusamo]

I knew you did and you're dead on the mark about Holder & Co regarding Contract Law.

There were a couple articles very recently about the bankruptcy judge in this bailout having some second thoughts and the possibility of him changing his ruling.

I don't remember the time line, did you see anything on it?

[jazusamo]

I believe Holder’s Just Us Dept has been out to lunch since early 2009.

[taildragger]

It looks like Contract Law has been destroyed by Holder & Co.

I wish I could tell you who.. I had this conversation with a mover and shaker that many here may or may not know that noted why would you risk your capital in preferred stock or corporate bonds when a "leader" with a flip of his hand can abscond all your capital and or efforts. IMHO Capital remains on strike and new ideas and inventions stay on holiday and hidden in the filing room drawers for another 4 years....

[jazusamo]

Found this article from 12-06-12 with a quick check, it's interesting but don't know what the chances are, probably slim.

Excerpt:

The bankruptcy expert said if the two sides cannot come to an agreement on Thursday, Gerber could preside over one of the most historic rulings in bankruptcy court history.

“This has tremendous implications for future of American business and bankruptcy precedent,” he said. “It means more than just GM—this is the rule of law and how creditors are treated in the United States legal system.”

Bailout on the Brink

[Sergio]

bkmk

[Uri’el-2012]

U-29012> It looks like Contract Law has been destroyed

IMHO Capital remains on strike and new ideas and inventions stay on holiday and hidden in the filing room drawers for another 4 years....

Another DRAG on the economy !

[GeronL]

There might be one or two FReepers surprised by this. Maybe.

[hattend]

Taxpayers Always Get Hosed, Period. in GM Buyback of Treasury Shares

Fixed the title.