Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

GM details plans to wipe out current shareholders [securities fraud]
The Globe and Mail / Reuters ^ | May 5, 2009 | Kevin Krolicki

Posted on 05/05/2009 9:06:48 PM PDT by 2ndDivisionVet

General Motors Corp on Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.

The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM, the company said.

The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM's shares could be worthless whether the company restructures out of court or in bankruptcy.

The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM's stock investors with just 1 percent of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.

GM shares closed on Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM's restructuring moves forward as described.

Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.

Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM's existing shareholders would see their stake in the 100-year-old automaker all but wiped out.

(Excerpt) Read more at globeinvestor.com ...


TOPICS: Breaking News; Business/Economy; Culture/Society; Government; US: Michigan
KEYWORDS: agenda; automakers; bailout; congress; corruption; democrats; economy; fascism; generalmotors; highcrimes; obama; securitiesfraud; uaw; unions; wallstreet
Navigation: use the links below to view more comments.
first previous 1-20 ... 121-140141-160161-180 ... 201-205 next last
To: Freedom Dignity n Honor; Jim Robinson
And *poor* GM, how many of us will buy their stock in the future?

Don't assume your enemy doesn't understand this.

The 0 admn is creating economic conditions that will put the govt in control of the major industries. The stress test for the largest banks will call for more capital. No one in their right mind will put money into a bank the govt says is failing, so the govt will come in and put the capital in and take control of the bank. You can already see this on a smaller scale as banks are trying to pay back TARP funds and the govt keeps coming up with new requirements.

Now Chrysler and GM will in the end be owned by the UAW and govt. The UAW will want to sell off it's stake to pay retiree benefits, no one will want any of the stock so the govt will step in and buy it.

We are going to have a very hard time fixing this mess, but we will have to because our economy will collapse just as it has in every other totalitarian regime that nationalizes the economy.

141 posted on 05/06/2009 7:10:10 AM PDT by wmfights (If you want change support SenateConservatives.com)
[ Post Reply | Private Reply | To 96 | View Replies]

To: 2ndDivisionVet

Wow! Where did you steal that? We used to have one of those back in the day. It’s beautiful.


142 posted on 05/06/2009 7:14:02 AM PDT by WVNan (Attack him where he is unprepared, appear where you are not expected.: Sun Tzu)
[ Post Reply | Private Reply | To 30 | View Replies]

To: 2ndDivisionVet; SumProVita; HardStarboard; BradyLS; Ernest_at_the_Beach; dervish; Twotone; ...

The List, ping

Let me know if you’d like on or off the ping list


143 posted on 05/06/2009 8:21:23 AM PDT by Nachum (the complete list at www.nachumlist.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 2ndDivisionVet

Shareholders need to take them to court!!


144 posted on 05/06/2009 8:23:16 AM PDT by SumProVita (Cogito, ergo...Sum Pro Vita. (Modified DeCartes))
[ Post Reply | Private Reply | To 1 | View Replies]

To: 444Flyer

Thank you for the heads up!


145 posted on 05/06/2009 8:25:03 AM PDT by Nachum (the complete list at www.nachumlist.com)
[ Post Reply | Private Reply | To 55 | View Replies]

To: scripter

ping


146 posted on 05/06/2009 8:26:02 AM PDT by scripter ("You don't have a soul. You are a soul. You have a body." - C.S. Lewis)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AH_LiveRight

Isn’t this outright thievery?


147 posted on 05/06/2009 8:31:55 AM PDT by happygrl (Hope and Change or Rope and Chains?)
[ Post Reply | Private Reply | To 32 | View Replies]

To: snowsislander

So... if I’m reading this right, the current 610 million shares will be reverse split to 6.1 million.

I don’t get it... shouldn’t a reverse stock split increase the share price?

Then, another 62 billion shares will become available at 0.01/share. So for the grand total of about 600 million dollars, Obama will essentially have 99.99% control of GM.

If that’s the case, I guess it won’t be long until we’re all forced to buy Chevy Yugo Hybrids...


148 posted on 05/06/2009 8:43:15 AM PDT by rock_lobsta (Atypical Crustacean)
[ Post Reply | Private Reply | To 108 | View Replies]

To: Freedom_Is_Not_Free
‘We’re Done With (fill in the blank)” Rally should be started with each state at the local level and rising up to “snag and shag” all the political self servers!

I doubt that many even understand what has just happened.

The 0bama Regime just broke SEC rules.

They are above the law, just as they are above the law in terms of National Security.

No, most 0bamaniacs will see this as "sticking it to The Man", not knowing or caring that they have just destroyed, not only the livelihood of auto workers, but of the many associated companies and their workers.

And that extends to any company or business in America that is connected in any way with bailouts or TARP funds.

THAT'S why the 0bama Regime does not want any of the TARP money given back.

That Scared Rabbit look you see on Geitner's face is because, unlike 0bama, he knows exactly was is happening, and has visions of El Duce's end in his mind.

149 posted on 05/06/2009 8:47:00 AM PDT by happygrl (Hope and Change or Rope and Chains?)
[ Post Reply | Private Reply | To 87 | View Replies]

To: timestax
ha hA..That man standing next to his 1929 car looks exactly like he’s talking on a cell phone!

I thought the same thing.

Had to remind myself that they didn't exist in 1929.

150 posted on 05/06/2009 8:48:59 AM PDT by happygrl (Hope and Change or Rope and Chains?)
[ Post Reply | Private Reply | To 81 | View Replies]

To: Freedom_Is_Not_Free
Whoops!

My post to you should have included this quote form yours:

With our dumbed-down, ignorant, apathetic, immoral, entitlement-minded electorate, he just might be right. I guess it is worth a gamble to him.

151 posted on 05/06/2009 9:02:00 AM PDT by happygrl (Hope and Change or Rope and Chains?)
[ Post Reply | Private Reply | To 87 | View Replies]

To: Orange1998

look in the mirror...


152 posted on 05/06/2009 9:09:30 AM PDT by Reagan80 ("Government is not the solution to our problem, Government IS the problem." -RR; 1980 Inaugural)
[ Post Reply | Private Reply | To 15 | View Replies]

To: happygrl

Cliff Asness (a hedge fund manager) had this to say:

“Let’s be clear, it is the job and obligation of all investment managers, including hedge fund managers, to get their clients the most return they can. They are allowed to be charitable with their own money, and many are spectacularly so, but if they give away their clients’ money to share in the “sacrifice”, they are stealing.”

“The President screaming that the hedge funds are looking for an unjustified taxpayer-funded bailout is the big lie writ large. Find me a hedge fund that has been bailed out. Find me a hedge fund, even a failed one, that has asked for one. In fact, it was only because hedge funds have not taken government funds that they could stand up to this bullying. The TARP recipients had no choice but to go along.”

“The President’s attempted diktat takes money from bondholders and gives it to a labor union that delivers money and votes for him. Why is he not calling on his party to “sacrifice” some campaign contributions, and votes, for the greater good? Shaking down lenders for the benefit of political donors is recycled corruption and abuse of power.”

The ACORN folks will silence this guy, and ruin his firm.

http://finance.yahoo.com/tech-ticker/article/241837/Hedge-Fund-Leader-Blasts-Obama-for-%22Bullying%22-and-%22Abuse-of-Power%22?tickers=%5Edji,%5Egspc,GM,ARM,DAN,GT,XLF?sec=topStories&pos=9&asset=&ccode=


153 posted on 05/06/2009 9:17:56 AM PDT by AH_LiveRight
[ Post Reply | Private Reply | To 147 | View Replies]

To: 2ndDivisionVet

Goodbye GM, you almost became a great car company.


154 posted on 05/06/2009 9:19:25 AM PDT by Republic of Texas (Socialism Always Fails)
[ Post Reply | Private Reply | To 1 | View Replies]

To: eyedigress

“Drive my Hyundai from Monday to Sunday”


155 posted on 05/06/2009 10:24:51 AM PDT by Polarik (Forgeries are forever)
[ Post Reply | Private Reply | To 48 | View Replies]

To: Constitution Day

My grandfather must be freaking out, he worked for GM and supposedly has shares of his own.


156 posted on 05/06/2009 11:05:50 AM PDT by Niuhuru
[ Post Reply | Private Reply | To 2 | View Replies]

To: Centurion2000

“contract law and property rights be DAMNED.”

Welcome to the new reality.


157 posted on 05/06/2009 11:06:58 AM PDT by Niuhuru
[ Post Reply | Private Reply | To 27 | View Replies]

To: livius

“a Great Leader to personalize it, put a face on it, and finish the task of making it fully accepted by Americans.”

A politically correct Great Leader. A white man would have been easy to defeat, but a black man was just the thing they needed. Now with Zero in charge he’s the perfect politically correct frontman for them.

All those dolts who voted for him to be ‘part of history’ are part of history indeed and I don’t think this is a great history.


158 posted on 05/06/2009 11:09:16 AM PDT by Niuhuru
[ Post Reply | Private Reply | To 104 | View Replies]

To: Petronski

Wow, no lube or anything. That’s harsh.


159 posted on 05/06/2009 11:10:21 AM PDT by publiusF27
[ Post Reply | Private Reply | To 12 | View Replies]

To: 2ndDivisionVet
Next — since no one in their right mind will EVER buy a GM product — Obama will shift the total cost of the UAW pension, health and other “legacy” expenses on to the American Taxpayer....

He will “sell” it as the “Right thing to do”....

Face facts folks — we have our own Chavez....
Except our bastard wasn't even eligible to run for president!

160 posted on 05/06/2009 11:17:28 AM PDT by river rat (Semper Fi - You may turn the other cheek, but I prefer to look into my enemy's vacant dead eyes.)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 121-140141-160161-180 ... 201-205 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson