There are laws in place for handling bankruptcies. Judges are to total up the resources and then allocate who gets what based on established laws. Creditors with secured debt are the first in line. Or they are supposed to be.
But the Obama administration has decided that the UAW is to get money first. They get 4.6Billion, another 1.5billion to be paid @ 9% interest (who gets 9% these days), 56% ownership AND a directors spot on the board.
Cerebus, one of the major creditors, out of $500,000 million owed to them get nothing. They give up all shares they had in the company (about 6%). They held title to the headquarter building, that is to be turned over as well.
Unnamed sources have told Glenn Beck that they have never witnessed such strong arming, the ends justify the means tactics as they witnessed in these meetings.
Out of the TARP money Chrysler owed to us the taxpayers, we get nothing. BUT we do get to give them another $2billion. This year. Next year another $4billion.
Someone TELL ME how the HELL any of this is legal?
And his supporters still think he is the greatest thing since sliced bread.
more to follow.......
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Side effect of these actions: no one will ever loan or invest in companies that might even remotely have any chance of going bankrupt or be taken over by the government. So there goes any stimulus through growth.
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