Posted on 04/14/2009 4:49:18 PM PDT by Sub-Driver
U.S. May Take Stake in GM To Pay Off Loans
By SHARON TERLEP and JEFFREY MCCRACKEN
The U.S. government is considering swapping some of the $13.4 billion it lent General Motors Corp. for ownership in a stripped-down version of the auto maker, a move it hopes will push the United Auto Workers union and bondholders to accept similar concessions, said people familiar with the matter.
Interim GM Chairman Kent Kresa said the company would welcome the government's willingness to let it pay off some of the loans with stock. "Certainly that would be helpful," he said in an interview Tuesday.
But the move also could leave the federal government a direct shareholder in the car maker for years to come, a position certain to be controversial.
The government is considering the step because it hasn't had success finding outside private investors for a revamped GM, said a person close to the situation. The government and GM advisers are "creating a new GM on the fly," said this person. The U.S. wants GM's revamping plan to be set by June 1.
The government hasn't said how much of its loans it is willing to swap for GM equity, but doesn't seem to be opposed to swapping all the debt, said this person.
The plan would further enmesh the federal government in a private U.S. company and raise questions about how much a management role the government would take and how long it would own the GM shares.
(Excerpt) Read more at online.wsj.com ...
The government is really the only customer these days for GM anyways.
Like that wasnt the plan from the beginning.
I must have missed exactly what part of the Constitution gives the U.S. Gov’t the power to buy up stock in privately owned companies?
“The U.S. government is considering swapping some of the $13.4 billion it lent General Motors Corp. for ownership in a stripped-down version of the auto maker, a move it hopes will push the United Auto Workers union and bondholders to accept similar concessions, said people familiar with the matter.”
Madness
we all knew it was coming
Ford will get my business next time I buy a car.
I must have missed exactly what part of the Constitution gives the U.S. Gov’t the power to buy up stock in privately owned companies?
That’s the part at the bottom of every job description “other duties as assigned”. I’m guessing it’s gotta be in the Constitution somewhere also, right next to the Dept of Education clause and before the “sharing the wealth” rider.
Two basic questions:
(If you’re a feminist or a stupid fascist, hide your eyes.)
One, if I put down my hard-earned money to buy a GM vehicle, will it have a lighter and ashtray so I can enjoy my cigar?
Two, my coffee cup has a wide-ass bottom that doesn’t fit those skinny, female receptacles where the ashtray used to be, so can I order a GM car with a receptacle that accepts a man’s coffee cup?
I have two GM products in my driveway. The last two that will be in my driveway. We are looking to replace the wife’s Buick and are looking at Honda. Sorry, will not buy from Government Motors.
This past January.
1 - continue to give tax payer $ away and get nothing
2 - continue to give tax payer $ away and get something which may, some day be worth something > 0.
The the Gov’t has to deal with unions and all the stupid laws they've passed which contributed to the demise of the US Auto market.
If the US Gov’t owns most of GM, does that mean Congress has to drive GM cars?
"US Nationalizes GM."
and they are working on natonalizing the insurance companies with TARP money.This is little known news.
Both parties printed up worthless pieces of paper, exchanged them, and think they pulled a fast one on each other.
I will never buy another GM car
Expect Yugos at a showroom near you, and probably eventually tax breaks exceeding 100% of the cost if you buy one and trade in your real car so it can be sent to Cuba where it will be driven 400,000 more miles.
The gov’t isn’t taking a stake in GM, it’s us taxpayers getting hosed. We’ll buying GM autos even if we don’t take delivery. All because our leaders want to run GM and save the UAW.
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