Biggest Losers in GM May Be Taxpayers, Altman Says
Posted in Bailouts, Constitution, Corruption and/or Public Mind Control, Declaration of Independence, Democratic Party, Economic Collapse, Election, Financial Crisis, Freedom, Government Corruption, Health Care, Income Taxes, Inflation, Lobbyists / Special Interests, Marinette, Menominee, Michigan, Morality and Virtue, Peshtigo, Public Concerns, Recession / Depression, Republic, Revolution, Senate, Social Security & Medicare, Social Security and Medicare, Stimulus, Stock Market, The Federal Reserve, The Matrix, U.S. Government, Universal Health Care, WI, Wisconsin, congress, economy, pork barrel, rights, stimulus bill, stimulus package, taxation on Jun 1st, 2009 No Comments »
“The bill is now up to $50 billion or more, which is what we said would be needed, but the government should be first in line,” Altman said today on Bloomberg Television. “The government will now have stock in the company, more than 72 percent. It is a big uncertainty if the company will do well. The potential biggest loser, unfortunately, is the U.S. taxpayer.”
The largest U.S. automaker plans to file for bankruptcy protection June 1, according to people familiar with the matter. The U.S. will fund GM’s reorganization with about $50 billion, including the automaker’s existing $19.4 billion in federal loans, the company said in a statement.
GM, contemplating a sale of assets to a new company through bankruptcy, would give 72.5 percent of GM’s equity to the U.S. Treasury, 17.5 percent to a union health trust, and a 10 percent stake to the old GM to pay bondholders and other creditors, the Detroit-based automaker said yesterday in a filing.
