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View Full Version : GM to sell to GOVT


KC-TBB
05-19-2009, 02:32 PM
NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

KC-TBB
05-19-2009, 02:33 PM
We are all going to be driving around in 25 hp 'smart cars' painted contractors beige.
ARRGGGGHHHH

Donger
05-19-2009, 02:35 PM
I guess "GM" still works, after all.

BigMeatballDave
05-19-2009, 02:43 PM
Hey, if they are gonna be owned by the government, shouldn't all taxpayers get employee pricing all the time now?

Buehler445
05-19-2009, 02:44 PM
Link?
Posted via Mobile Device

Buehler445
05-19-2009, 02:45 PM
This thing reeks of the airbus fail.
Posted via Mobile Device

mikey23545
05-19-2009, 02:52 PM
Wow, nationalization on the scale of Chavez...

HemiEd
05-19-2009, 03:19 PM
Wow, nationalization on the scale of Chavez...

Is this the Change that everyone was promised?

Raised On Riots
05-19-2009, 03:32 PM
Yep, eight years of irresponsible bullshit is a bitch of a hole to have to try and climb out of.
More damage done to the Nation by the Neo Cons.

Great job guys! Just great.

SBK
05-19-2009, 03:36 PM
http://obamamedia.files.wordpress.com/2008/03/change-we-can-believe-in-1024px.png

SBK
05-19-2009, 03:37 PM
Yep, eight years of irresponsible bullshit is a bitch of a hole to have to try and climb out of.
More damage done to the Nation by the Neo Cons.

Great job guys! Just great.

Now you're pretending to be BEP?

Raised On Riots
05-19-2009, 03:39 PM
I'm tellin' ya'; god damn that Obama for not having a magic wand! Who the fuck does he think he is?!
Call Gingrich, I'm sure he has one.

Donger
05-19-2009, 03:40 PM
I can't wait to pick up an Obamobile. It'll perform worse than the competition but only cost twice as much.

jAZ
05-19-2009, 03:42 PM
http://en.wikipedia.org/wiki/IndyMac_Bank

IndyMac Federal Bank, FSB (Federal Savings Bank) is a bridge bank created to manage assets and liabilities of IndyMac Bank, FSB. As of March 19, 2009, all deposits of IndyMac Federal Bank have been transferred to OneWest Bank, a newly created bank also based in Pasadena. "IndyMac" is a generally accepted contraction of the formal name Independent National Mortgage Corporation. Before its failure, IndyMac Bank was the largest savings and loan association in the Los Angeles area and the seventh largest mortgage originator in the United States.[1] The failure of IndyMac Bank on July 11, 2008, was the fourth largest bank failure in United States history[2], and the second largest failure of a regulated thrift.[3] IndyMac Bank's parent corporation was IndyMac Bancorp until the FDIC seized IndyMac Bank [4]. IndyMac Bancorp has filed for Chapter 7 bankruptcy[4].

sedated
05-19-2009, 03:43 PM
In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

am I reading that correctly? The government loaned a bunch of taxpayer money to GM in the bailout, then the government "takes over" GM and forgives the taxpayer loan? isn't that kinda like stealing? or am I completely off here?

Raised On Riots
05-19-2009, 03:44 PM
I can't wait to pick up an Obamobile. It'll perform worse than the competition but only cost twice as much.

Will you upgrade to the rich Corinthian leather?

Stewie
05-19-2009, 03:46 PM
Yep, eight years of irresponsible bullshit is a bitch of a hole to have to try and climb out of.
More damage done to the Nation by the Neo Cons.

Great job guys! Just great.

Try 15 years, starting with Robert Rubin, the worst Treasury Secretary to walk the face of the U.S.

Remember the stock market bubble in the late 90s? Robert Rubin. That started the whole "liquidity trying to find a home" syndrome. He, of course, went back to the big bank liars club and made a shitload of money ripping off Joe Sixpack.

2008 compensation for Robert Rubin at Citigroup?: $50 million

Donger
05-19-2009, 03:46 PM
Will you upgrade to the rich Corinthian leather?

I'm going all out and getting the Nairobian.

SBK
05-19-2009, 03:50 PM
The cool thing about an Obamobile is that if you're in a pinch it'll perform an abortion for you while the car is in cruise control.

bogey
05-19-2009, 03:50 PM
Too many cynics on here. Why not put this in the DC forum where it belongs and lets get back to Jon and Kate.

SBK
05-19-2009, 03:51 PM
I also heard that the Obamobile will also cost $50,000 if you make less than $250,000, but if you make more than $250,000 it will cost $14,000,000.

sedated
05-19-2009, 03:53 PM
DC in 5, 4, 3...

Raised On Riots
05-19-2009, 03:53 PM
The cool thing about an Obamobile is that if you're in a pinch it'll perform an abortion for you while the car is in cruise control.

That sounds like a fantastic feature. I can definitely think of at least two posters whose parents should have owned an Obamamobile.

Cave Johnson
05-19-2009, 03:54 PM
Try 15 years, starting with Robert Rubin, the worst Treasury Secretary to walk the face of the U.S.

Remember the stock market bubble in the late 90s? Robert Rubin. That started the whole "liquidity trying to find a home" syndrome. He, of course, went back to the big bank liars club and made a shitload of money ripping off Joe Sixpack.

It's all Bob Rubin's fault. To the torches and pitchforks.

BigMeatballDave
05-19-2009, 03:55 PM
This thread turned into a cesspool very quickly.

bogey
05-19-2009, 03:57 PM
Okay, since I don't ever go to the DC forum, keep this thread here so I can get a full understanding of how many closed minded black and white dumbasses are CP members.

SBK
05-19-2009, 03:57 PM
That sounds like a fantastic feature. I can definitely think of at least two posters whose parents should have owned an Obamamobile.

I shouldn't laugh, but I did. Am I one of them?

SBK
05-19-2009, 03:58 PM
Also, new from Obamobile, after your car has been purchased, the loan holder will be required to take 30% of what they are owed, and the rest of the note is due to the UAW.

Stewie
05-19-2009, 03:59 PM
It's all Bob Rubin's fault. To the torches and pitchforks.

Bob? Are you friends with that dillhole?

To anyone who has studied this recession/depression the lineage is quite apparent. The ramping up of liquidity started with Rubin/Greenspan and the "Oh, there doesn't need to be regulation on derivatives! They're a way to spread risk!" What a dumbass. Then again, Ben "I never saw this coming" Bernanke is still employed.

Donger
05-19-2009, 03:59 PM
This thread turned into a cesspool very quickly.

Oh come on. jAZ isn't THAT bad.

BucEyedPea
05-19-2009, 04:01 PM
Remember Soviet cars? Here we come.

Deberg_1990
05-19-2009, 04:01 PM
How long until the Government creates a law that states: "Every household must own at least 1 American made car" ???

Raised On Riots
05-19-2009, 04:05 PM
I shouldn't laugh, but I did. Am I one of them?

No.:)

Alright; this thread is like wizzing on an electric fence. I'm done.

Stewie
05-19-2009, 04:08 PM
No.:)

Alright; this thread is like wizzing on an electric fence. I'm done.

You were out of your league from the start. I understand why you're done.

Cave Johnson
05-19-2009, 04:25 PM
Bob? Are you friends with that dillhole?

To anyone who has studied this recession/depression the lineage is quite apparent. The ramping up of liquidity started with Rubin/Greenspan and the "Oh, there doesn't need to be regulation on derivatives! They're a way to spread risk!" What a dumbass. Then again, Ben "I never saw this coming" Bernanke is still employed.

To Alan G's house!

Cave Johnson
05-19-2009, 04:28 PM
In all seriousness, I agree with you on Greenspan, although my understanding is that most of the "ramping up of liquidity" occurred after Rubin left Treasury.

SBK
05-19-2009, 05:01 PM
Is this even allowed, legally speaking?
Posted via Mobile Device

Pants
05-19-2009, 07:26 PM
I really don't understand why people are crucifying Obama... what would you guys have the government do? Let GM collapse and create a huge chain reaction of unemployment claims? I really want to hear what you'd like to see done, because all you do is hiss at this, without considering the alternative...

googlegoogle
05-19-2009, 08:42 PM
I really don't understand why people are crucifying Obama... what would you guys have the government do? Let GM collapse and create a huge chain reaction of unemployment claims? I really want to hear what you'd like to see done, because all you do is hiss at this, without considering the alternative...


Economics is counter intuitive.

Go check out some books at the library about economics.

Thought experiment using your logic - We should all drop capitalism and let the government give us all jobs with high wages. What would happen?

Pants
05-19-2009, 09:37 PM
Economics is counter intuitive.

Go check out some books at the library about economics.

Thought experiment using your logic - We should all drop capitalism and let the government give us all jobs with high wages. What would happen?

When conglomerates like GM, et al get involved, your little theory goes out the widow. I'm not a huge supporter of government buying out sinking ships, but I do believe it's necessary. Kind of like when you amputate a gangrenous leg, of course it's a shitty deal - but it's better than the alternative.

Buehler445
05-19-2009, 09:45 PM
When conglomerates like GM, et al get involved, your little theory goes out the widow. I'm not a huge supporter of government buying out sinking ships, but I do believe it's necessary. Kind of like when you amputate a gangrenous leg, of course it's a shitty deal - but it's better than the alternative.

My problem with it is that WTF can the government do to help it?

The government is HORRIBLE at business. Horrible at it. If private industry can't do it, how can government?

Long term, it may be best to cut it loose now better than later.

I don't have the answer, but I am very very skeptical.

SBK
05-19-2009, 11:51 PM
I really don't understand why people are crucifying Obama... what would you guys have the government do? Let GM collapse and create a huge chain reaction of unemployment claims? I really want to hear what you'd like to see done, because all you do is hiss at this, without considering the alternative...

The reason these companies won't go away is because of how much money unions give to the democratic party.

If a company goes belly up it should not be bailed out by the government, ever.

sportsman1
05-20-2009, 01:44 AM
With this it is as good as saying Capitalism fails. Which is obviously bullS**t.

patteeu
05-20-2009, 09:45 AM
Yep, eight years of irresponsible bullshit is a bitch of a hole to have to try and climb out of.
More damage done to the Nation by the Neo Cons.

Great job guys! Just great.

Did you think this made sense when you posted it? Were you a heavy acid user back in the day?

BucEyedPea
05-20-2009, 09:48 AM
In all seriousness, I agree with you on Greenspan, although my understanding is that most of the "ramping up of liquidity" occurred after Rubin left Treasury.

It's been the past 16 years. They're all responsible.

BucEyedPea
05-20-2009, 09:49 AM
Now you're pretending to be BEP?

It's flattering.

BucEyedPea
05-20-2009, 09:50 AM
Yep, eight years of irresponsible bullshit is a bitch of a hole to have to try and climb out of.
More damage done to the Nation by the Neo Cons.

Great job guys! Just great.

Umm....they're still in power. The went back to the D party where they originally came.

wild1
05-20-2009, 11:19 AM
i have bought my last GM vehicle. i will not encourage or help perpetuate government confiscation of private industry.

CoMoChief
05-20-2009, 11:27 AM
Jesus fuckin christ, Yea...HOORAY for creating money from nowhere!!!!!!!!!

Brock
05-20-2009, 01:55 PM
They should have saved Studebaker instead.

Radar Chief
05-20-2009, 02:02 PM
They should have saved Studebaker instead.

Gee our old LaSalle ran great. ;)