How Stevie The Rat Bankrupted GM

[zengrifter]

How Stevie The Rat Bankrupted GM

By Greg Palast
RENSE | 6-1-9

Screw the autoworkers.

They may be crying about General Motors' bankruptcy today. But dumping 40,000 of the last 60,000 union jobs into a mass grave won't spoil Jamie Dimon's day.

Dimon is the CEO of JP Morgan Chase bank. While GM workers are losing their retirement health benefits, their jobs, their life savings; while shareholders are getting zilch and many creditors getting hosed, a few privileged GM lenders - led by Morgan and Citibank - expect to get back 100% of their loans to GM, a stunning $6 billion.

The way these banks are getting their $6 billion bonanza is stone cold illegal.

I smell a rat.

Stevie the Rat, to be precise. Steven Rattner, Barack Obama's 'Car Czar' - the man who essentially ordered GM into bankruptcy this morning.

When a company goes bankrupt, everyone takes a hit: fair or not, workers lose some contract wages, stockholders get wiped out and creditors get fragments of what's left. That's the law. What workers don't lose are their pensions (including old-age health funds) already taken from their wages and held in their name.

But not this time. Stevie the Rat has a different plan for GM: grab the pension funds to pay off Morgan and Citi.

MORE- http://rense.com/general86/rat.htm

[zengrifter]

Very insightful. zg

[zengrifter]

Something Is Rotten In The Auto Bankruptcy Deals

By Joel Skousen
Editor - World Affairs Brief
RENSE | 6-5-9

Here's how the Dow News Wire described the carnage: "GM said it would close 17 factories and parts centers and lop off 20,000 more jobs by the end of 2011 in Michigan, Indiana, Ohio, Tennessee and other states [many of those jobs will be bought off with six-figure payouts, courtesy of the taxpayers]. The new price tag will be $30 billion, on top of $20 billion in U.S. funds already put into the company. In exchange, the U.S. will own 60% of the new GM. In all, the rescue of the car industry could cost taxpayers close to $100 billion.

"GM's court-supervised restructuring began just hours after a New York bankruptcy judge approved the sale of most of Chrysler's assets to Italy's Fiat SpA. Chrysler sought Chapter 11 protection about a month ago. President Obama defended his decision to take a majority stake in GM, saying it was unavoidable and temporary." But, if the companies don't become profitable, it won't be temporary. If it takes too long to become profitable and the US keeps pouring billions into the companies, which is almost a certainty, the companies will never be able to afford to buy out the taxpayer interest.

MORE- http://rense.com/general86/auto.htm

[aslan]

Originally Posted by zengrifter

How Stevie The Rat Bankrupted GM

By Greg Palast
RENSE | 6-1-9

Screw the autoworkers.

They may be crying about General Motors' bankruptcy today. But dumping 40,000 of the last 60,000 union jobs into a mass grave won't spoil Jamie Dimon's day.

Dimon is the CEO of JP Morgan Chase bank. While GM workers are losing their retirement health benefits, their jobs, their life savings; while shareholders are getting zilch and many creditors getting hosed, a few privileged GM lenders - led by Morgan and Citibank - expect to get back 100% of their loans to GM, a stunning $6 billion.

The way these banks are getting their $6 billion bonanza is stone cold illegal.

I smell a rat.

Stevie the Rat, to be precise. Steven Rattner, Barack Obama's 'Car Czar' - the man who essentially ordered GM into bankruptcy this morning.

When a company goes bankrupt, everyone takes a hit: fair or not, workers lose some contract wages, stockholders get wiped out and creditors get fragments of what's left. That's the law. What workers don't lose are their pensions (including old-age health funds) already taken from their wages and held in their name.

But not this time. Stevie the Rat has a different plan for GM: grab the pension funds to pay off Morgan and Citi.

MORE- http://rense.com/general86/rat.htm

The Good Ol' Boy network is alive and well at the highest levels of finance. az