Further to our post of May 14, kudos to the WaPo, who is like a terrier with a bone on the issue of the blatant inequity in the government takeover of Chrysler and GM. They've now editorialized on it twice in a little under two weeks. In today's installment, entitled, "Government Motors," they point out once again the proposed haircut (more like a buzz cut) for the investors while the UAW gets a trim:
"While the Obama administration has been playing hardball with bondholders, it has been more than happy to play nice with the United Auto Workers. How else to explain why a retiree health-care fund controlled by the UAW is slated to get a 39 percent equity stake in GM for its remaining $10 billion in claims while bondholders are being pressured to take a 10 percent stake for their $27 billion?"
As the WaPo points out, this has become a political, not a financial, process. Good luck finding investors for other future adventures.
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