Agreed.
This wasn't a normal bankruptcy. It was a huge bailout for the unions, which should have gotten the politicians that were paying off their contributors tossed in jail for a very long time.
Absolutely agreed.
The union shouldn't profit from the previous losses they aren't going to have to make whole.
Apparently GM was dissolved, as they are talking about an IPO.
First of all I'm skeptical of anything the government does to wipe out tax credits and collect more taxes.
The bankruptcy did wipe out some of GM's debt, but not all of it. So you can say that some of those losses were wiped out by the bankruptcy. However, the whole purpose of bankruptcy is to help a company get back on sound footing, not to produce a windfall in new tax revenues for the government.
When you make money you have to pay taxes on earnings. When you lose money the government doesn't refund any of the taxes you have paid, they give you credits against future earnings. Those tax credits are kind of a liability for the government. I don't see why that liability should be wiped out as well.
However this seems to be a unique case. The stockholders got completely screwed. Their old stock became worthless. I can see the point where you could say that these tax credits belonged to them, and since they no longer have any interest in GM, those tax credits no longer belong to this new GM. But I don't see any efforts by the government to transfer those tax credits over to the stockholders they screwed over, and I see absolutely no reason the government should just make those tax credits disappear. It's just a multibillion dollar money grab by the government.
To me this falls under two wrongs not making a right.
Apparently GM was dissolved, as they are talking about an IPO.
That makes sense, because I don't see how they could so thoroughly screw over the stock holders and secured debt holders and still have it be the same company. I really don't understand how this was remotely legal anyway. They basically gave money that secured debt holders should have gotten to the unions, and handed over billions in taxpayer dollars, mainly to the unions. Then they bullied any investors that considered fighting it in court.