We all know that the Obama administration chose to bail out GM rather than follow the bankruptcy laws in order to benefit the Democrat union voting base. Under normal bankruptcy laws GM would have survived and would, most probably, be better off today than it is with the government messing around with it.
Bond holders, many of whom were retirees , were stripped of their legal rights, and 20,000 people had the majority of their pension benefits stripped away simply because they did not belong to a union. Their has to be a crime somewhere in this whole mess. I guess this is Chicago politics at its worst.
This Daily Caller article may point to one of the illegalities.
Excerpt: Emails obtained by The Daily Caller show that the U.S. Treasury Department, led by Timothy Geithner, was the driving force behind terminating the pensions of 20,000 salaried retirees at the Delphi auto parts manufacturing company.
The move, made in 2009 while the Obama administration implemented its auto bailout plan, appears to have been made solely because those retirees were not members of labor unions.
The internal government emails contradict sworn testimony, in federal court and before Congress, given by several Obama administration figures. They also indicate that the administration misled lawmakers and the courts about the sequence of events surrounding the termination of those non-union pensions, and that administration figures violated federal law.
Delphi, a General Motors company, is one of the world’s largest automotive parts manufacturers. Twenty thousand of its workers lost nearly their entire pensions when the government bailed out GM. At the same time, Delphi employees who were members of the United Auto Workers union saw their pensions topped off and made whole.
Read the full Daily Caller article here.