Obama thinks structured bankruptcy for GM is inevitable

[sunzt]

GM got billions in bailout money to give this company a hail mary chance to restructure, but not enough balls on all sides of the table (union, management, debt holders) to get any real sacrifices. This is what has to happen to prevent them from becoming permanent government leeches.

Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Bloomberg

Obama Said to Conclude Bankruptcy Best Option for GM, Chrysler

March 31 (Bloomberg) -- President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said.

Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can?t form an alliance with Fiat SpA, said members of Congress who have been briefed on the subject and two other people familiar with the administration?s deliberations.

While Obama two days ago gave GM 60 days to come up with deeper cost and debt reductions than the biggest U.S. automaker proposed in a viability plan submitted last month, the ?quick and surgical? bankruptcy his administration described as an option appears to be inevitable, the people said. Obama personally signed off on asking GM Chief Executive Officer Rick Wagoner to step down, as he did on March 29, they said.

?Our focus is on accelerating the speed of our operational restructuring and reducing liabilities and debt on the balance sheet,? GM spokeswoman Renee Rashid-Merem said in an e-mail. ?GM will take whatever steps are necessary to successfully restructure our company.?

Chrysler spokesman Todd Goyer didn?t immediately comment.

 

[sciwizam]

Weren't everyone saying this before we gave them the bailout money?

 

[BigJelly]

Originally posted by: sunzt
GM got billions in bailout money to give this company a hail mary chance to restructure, but not enough balls on all sides of the table (union, management, debt holders) to get any real sacrifices. This is what has to happen to prevent them from becoming permanent government leeches.

Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Bloomberg

Obama Said to Conclude Bankruptcy Best Option for GM, Chrysler

March 31 (Bloomberg) -- President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said.

Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can?t form an alliance with Fiat SpA, said members of Congress who have been briefed on the subject and two other people familiar with the administration?s deliberations.

While Obama two days ago gave GM 60 days to come up with deeper cost and debt reductions than the biggest U.S. automaker proposed in a viability plan submitted last month, the ?quick and surgical? bankruptcy his administration described as an option appears to be inevitable, the people said. Obama personally signed off on asking GM Chief Executive Officer Rick Wagoner to step down, as he did on March 29, they said.

?Our focus is on accelerating the speed of our operational restructuring and reducing liabilities and debt on the balance sheet,? GM spokeswoman Renee Rashid-Merem said in an e-mail. ?GM will take whatever steps are necessary to successfully restructure our company.?

Chrysler spokesman Todd Goyer didn?t immediately comment.

i actually agree with allowing GM to go bankrupt because it could get the UAW off its back, then AND ONLY THEN could GM be profitable. BUT obama has shown no signs that he will make the UAW compromise--hence the term of "surgical" bankruptcy which leaves the UAW off the hook on compromising.

i may be wrong but obama has already shown that he will most likely take the side of the unions.

 

[Budmantom]

Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

 

[DealMonkey]

Originally posted by: sunzt
Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Didn't you get the GOP talking points memo? They whine no matter what the outcome.

 

[CADsortaGUY]

Originally posted by: DealMonkey

Originally posted by: sunzt
Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Didn't you get the GOP talking points memo? They whine no matter what the outcome.

Except this is what most of us on the right wanted them to do instead of having the gov't "bail" them out by giving them boatloads of money. "This" meaning structured BK - not the gov't forcing a private company to do things like "this". 😉

 

[Budmantom]

Originally posted by: DealMonkey

Originally posted by: sunzt
Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Didn't you get the GOP talking points memo? They whine no matter what the outcome.

Did you guys drink the kool-aid from the same glass?

 

[DealMonkey]

Originally posted by: BigJelly
i actually agree with allowing GM to go bankrupt because it could get the UAW off its back, then AND ONLY THEN could GM be profitable. BUT obama has shown no signs that he will make the UAW compromise--hence the term of "surgical" bankruptcy which leaves the UAW off the hook on compromising.

Oh I see, it's more fodder for the "I hate unions" crowd. :roll: Yeah, I'm sure it's merely the unions holding GM back and not their shitty leadership.

 

[Budmantom]

Originally posted by: DealMonkey

Originally posted by: BigJelly
i actually agree with allowing GM to go bankrupt because it could get the UAW off its back, then AND ONLY THEN could GM be profitable. BUT obama has shown no signs that he will make the UAW compromise--hence the term of "surgical" bankruptcy which leaves the UAW off the hook on compromising.

Oh I see, it's more fodder for the "I hate unions" crowd. :roll: Yeah, I'm sure it's merely the unions holding GM back and not their shitty leadership.

It's the unions and the shitty leadership from the unions.

 

[zephyrprime]

Originally posted by: DealMonkey

Originally posted by: sunzt
Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Didn't you get the GOP talking points memo? They whine no matter what the outcome.

Let's be realistic, the opposing political party will always try to score political points regardless of what their prior position was. Both parties are whores in this respect.

It's too bad Obama didn't have the balls to treat the banks the same way. I guess that's because the banks own the country rather than the auto industry.

 

[sunzt]

Originally posted by: zephyrprime

Originally posted by: DealMonkey

Originally posted by: sunzt
Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Didn't you get the GOP talking points memo? They whine no matter what the outcome.

Let's be realistic, the opposing political party will always try to score political points regardless of what their prior position was. Both parties are whores in this respect.

It's too bad Obama didn't have the balls to treat the banks the same way. I guess that's because the banks own the country rather than the auto industry.

I would disagree. The american auto industry had this problem due to decisions from the top that trickled down to lower management. The unions was also an industry wide pandemic that did not not the profits.

Banks, on the other hand, are failing due to decisions by financial service heads or the few executives who understood the subprime repackaging game. Managers and heads of other divisions did what they were told to do pretty well. Their managers or employees did not subvert their company the way unions and a culture of cutting corners did to the auto industry.

 

[alphatarget1]

This should've happened before GM asked for bailout funds back in November was it?

 

[alphatarget1]

Originally posted by: DealMonkey

Originally posted by: BigJelly
i actually agree with allowing GM to go bankrupt because it could get the UAW off its back, then AND ONLY THEN could GM be profitable. BUT obama has shown no signs that he will make the UAW compromise--hence the term of "surgical" bankruptcy which leaves the UAW off the hook on compromising.

Oh I see, it's more fodder for the "I hate unions" crowd. :roll: Yeah, I'm sure it's merely the unions holding GM back and not their shitty leadership.

Both are responsible.

 

[Hacp]

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

+1

Ever since Obama won in November, GM's been getting a free ride.

 

[Strk]

Originally posted by: BigJelly

Originally posted by: sunzt
GM got billions in bailout money to give this company a hail mary chance to restructure, but not enough balls on all sides of the table (union, management, debt holders) to get any real sacrifices. This is what has to happen to prevent them from becoming permanent government leeches.

Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Bloomberg

Obama Said to Conclude Bankruptcy Best Option for GM, Chrysler

March 31 (Bloomberg) -- President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said.

Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can?t form an alliance with Fiat SpA, said members of Congress who have been briefed on the subject and two other people familiar with the administration?s deliberations.

While Obama two days ago gave GM 60 days to come up with deeper cost and debt reductions than the biggest U.S. automaker proposed in a viability plan submitted last month, the ?quick and surgical? bankruptcy his administration described as an option appears to be inevitable, the people said. Obama personally signed off on asking GM Chief Executive Officer Rick Wagoner to step down, as he did on March 29, they said.

?Our focus is on accelerating the speed of our operational restructuring and reducing liabilities and debt on the balance sheet,? GM spokeswoman Renee Rashid-Merem said in an e-mail. ?GM will take whatever steps are necessary to successfully restructure our company.?

Chrysler spokesman Todd Goyer didn?t immediately comment.

i actually agree with allowing GM to go bankrupt because it could get the UAW off its back, then AND ONLY THEN could GM be profitable. BUT obama has shown no signs that he will make the UAW compromise--hence the term of "surgical" bankruptcy which leaves the UAW off the hook on compromising.

i may be wrong but obama has already shown that he will most likely take the side of the unions.

The unions have made numerous concessions.

 

[Cattlegod]

FYI - The UAW won't go away. It took something like 21 months for Delphi to renegotiate the union contract when it went bankrupt.

edit: i'm going to see how expensive some 3.00 puts are tomorrow.

 

[imported_Lothar]

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Wasn't it Bush who originally loaned them money in the 1st place claiming that "he didn't want to leave a mess for Obama" in late December?
Congress rejected giving them any bailout money in early december which left the Bush white house scrambling trying to ensure their legacy.

That's how I remembered the events.

 

[imported_Lothar]

Which begs the question...Will we get our money back?

How do we expect to recover our money back from a private entity such as Chrysler?

 

[her209]

Originally posted by: Lothar

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Wasn't it Bush who originally loaned them money in the 1st place claiming that "he didn't want to leave a mess for Obama" in late December?
Congress rejected giving them any bailout money in early december which left the Bush white house scrambling trying to ensure their legacy.

That's how I remembered the events.

Yep, the bill to bailout the Big-3 failed so Bush said he was going to use money from the TARP.

link

 

[JEDIYoda]

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Didn't you get the GOP talking points memo? They whine and never back up what they say with links no matter what the outcome.

 

[imported_Lothar]

Originally posted by: her209

Originally posted by: Lothar

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Wasn't it Bush who originally loaned them money in the 1st place claiming that "he didn't want to leave a mess for Obama" in late December?
Congress rejected giving them any bailout money in early december which left the Bush white house scrambling trying to ensure their legacy.

That's how I remembered the events.

Yep, the bill to bailout the Big-3 failed so Bush said he was going to use money from the TARP.

So then it's Bush that gets the blame for treating taxpayer money like confetti in this auto mess and not Obama or any other democrat.

Either he was really stupid to think the automakers could survive or he was just trying to bailout his old buddy John Snow(chairman of Cerebus which owns the largest stake in Chrysler???)

 

[Budmantom]

Originally posted by: Lothar

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Wasn't it Bush who originally loaned them money in the 1st place claiming that "he didn't want to leave a mess for Obama" in late December?
Congress rejected giving them any bailout money in early december which left the Bush white house scrambling trying to ensure their legacy.

That's how I remembered the events.

I thought it was at the request of Obama but I could be wrong.

 

[Budmantom]

Originally posted by: JEDIYoda

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Didn't you get the GOP talking points memo? They whine and never back up what they say with links no matter what the outcome.

I was going from memory but here is a link.

 

[imported_Lothar]

Originally posted by: Budmantom

Originally posted by: Lothar

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Wasn't it Bush who originally loaned them money in the 1st place claiming that "he didn't want to leave a mess for Obama" in late December?
Congress rejected giving them any bailout money in early december which left the Bush white house scrambling trying to ensure their legacy.

That's how I remembered the events.

I thought it was at the request of Obama but I could be wrong.

I'm not so sure about that.

The point is even if it was, he didn't have to honor the request or sign the dotted line.
The buck stops with him. There shouldn't be any "passing the buck" to Obama or other democrats here.

 

[imported_K3N]

Obama: Reincarnation of the anti-industrial jimmy carter.