Dictatorship Motors or Goldman Sachs Motors?

Tuesday, April 28, 2009
Posted in category Uncategorized
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So here it is, the US Treasury Department’s latest plan: 50% of General Motors. The union would get 40% of the company, and the bondholders who funded GM (bond funds were used to provide funds for GM workers’ pension plan) are being told to go fly a kite. They’ll get 10%.

Barclay Capital auto analyst Brian Johnson said the bondholder offer likely will fail because bondholders would recover up to 5 cents on the dollar compared to a 50-cent to 60-cent recovery for the United Auto Workers union, which will own up to 39 percent of GM with the deal it has agreed to with the company.

Right across the street from me, in GM’s HQ on Jefferson Avenue, sits a bunch of bloated bureaucrats from the government’s task force, telling GM how to run its business. The task force has the power to make product decisions and will have the power to approve which GM plants will be closed and who will lose their jobs. On March 30th, Obama said, “Let me be clear. The United States government has no interest in running GM. We have no intention of running GM.” And?

The Treasury Department already has veto power over any transaction of $100 million or more at GM and other significant transactions, and it has exercised some of that control. The Treasury objected to a GM deal with Delphi Corp. last month.
The Treasury could opt to select GM’s managers and set their pay, business strategy and relationship with employees, unions and others, GM said. The auto task force is already consulted on all major decisions.

I have said so many times: it’s the guys from Wall Street who run the government and the guys from government who run Wall Street. Only the guys from Wall Street – especially Goldman Sachs – who have taken over the Treasury Department are now attempting to control what has been one of the world’s largest manufacturing companies. What a great way to get its tentacles into a very important market, but also, controlling this company will allow the feds to ram their socialist-totalitarian, green agenda down all of our throats.

By the way, did I miss the part in the Constitution where powers were granted to the Treasury Department and its hired hacks?

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