Quote:
Originally Posted by Smittie61984
I thought GM/Chrysler never went technically bankrupt becuase President Obama went some old skool Chi-town politics and changed the bankruptcy laws so that GM/Ch couldn't go into bankruptcy where they could then renegotiate union contracts.
|
They went through managed bankruptcies. In the case of GM anyway as I understand it they messed with the law so that bondholders got screwed instead of being the first to get paid. They also allowed all the bad stuff to get dumped on the bankrupt entity and all the good stuff transferred to the new company. They gave a nice chunk of that new company to the UAW (in the 17% range I believe) and while I don't know if they weren't allowed or just chose not to I don't believe they tried to vacate their union contracts. In exchange for a buttload of cash the government got majority stake in the new company (~60%, part of which was sold off in the IPO).
Romney, on the other hand, advocated for managed bankruptcies. Sounds strangely familiar doesn't it? Yet the Obama admin has continually hammered Romney for it and stated they saved more than 1 million jobs Romney would have eliminated.