A Primer on the G.M. Bankruptcy

Q. What happens to G.M. dealers?

A. G.M. is able under bankruptcy to cancel franchise agreements with its dealers...


Q. What happens to G.M. employees?

A. G.M. employees who are not union members do not have any job security. The company can ask a judge for an immediate pay cut for its salaried employees, and can announce job cuts and close offices.... Contracts covering members of the United Automobile Workers union and other unions will remain in force, unless the company asks a judge to void them...


Q. Are pensions and retiree health care benefits protected?

A. Companies have the right under bankruptcy law to ask to terminate their pension plans. If pensions were terminated, employees would receive reduced benefits through...the federal pension agency. A company can also eliminate retiree health care benefits for nonunion employees; they would subsequently be covered by Medicare if they were 65 or older.


Q. What happens to G.M. suppliers?

A. ...in bankruptcy, supplier contracts can be canceled.


Q. Will the warranty for G.M. vehicles be honored?

A. Yes...


Q. Are any current stockholder’s shares worthless? What options exist for stockholders?

A. Most shareholders are typically wiped out in bankruptcy...





http://www.nytimes.com/2009/06/02/business/02primer.html?ref=your-money

Now lets see...the Wall Street investment and money center banks trashed the economy through the derivatives scam - sub primes, credits waps, etc. Banking expert William K. Black calls some of their behavior fraudulent.

=> The banks were bailed out, bankers kept their jobs and bonuses.

Congress legalized these rotten enterprises through "enabling acts for an era of greed." That esteemed body failed
to engage in any regulation in the 2000-2008 period while the U.S. Treasury was looted.

=> Most of the members who "deregulated" banking and created the derivatives casino that brought us down. They got
a raise and guaranteed income.

GM needed only a fraction of what Wall Street and the banks got, a tiny fraction, and some decent management.

=> GM got to go bankrupt after having a change in CEO's to a new leader who said he'd outsource jobs overseas. GM
workers and suppliers got screwed royally and the shareholders are left with nothing.

Where's the justice? Where's the accountability?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5774539


"planned disinvestment"

"scam"

No other interpretation, it's U.S. of A. - the federal government that is to serve the United States.

What an outrage.

gov takes over gm to give them $$$ to build plant in communist china.

;)

GM's regional units are blocked from tapping the financial support being given to the parent company. But Carlisle said the Southeast Asia arm is talking with Thai banks about financing and its chances of getting loans are "quite high."

http://www.chicagotribune.com/business/nationworld/wire/sns-ap-as-asia-gm,0,3339282.story