That Barack guy! He understands the meaning of the word “LOYALTY”. He may throw his pastor under the bus and his grandmother and… well, you know. But to his real friends, the ones who deliver large chucks of cash to Obama and Democrats and who are willing to do the hard, dirty and largely unappreciated work of vote fraud and thuggery-on-demand, the First Dude is loyal to a fault. I mean, just look at this group of guys in Iowa who had TheWon’s back in ’08…
And those guys would, of course, be members of the Iowa UAW.
Oh, and doesn’t that bunch of white guys look excited and happy to be there?
And when it came Payback Time, Barack came through. Remember the travails of poor General Motors last year? They were on the verge of not being able to make payroll. Now had that been MY company, I would have had to seek help through the federal Bankruptcy Courts. As GM should have been forced to do. But no, TheWon came to their rescue. Well not exactly. He came to the rescue of the UAW who most likely would have ended up on the short end in BK Court, having their contract nullified and most likely rewritten. But along came TheWon and his Car Czar. They imposed a settlement and infused GM with my money and in the process, then current GM shareholders – including lots of GM retirees – got zip. Secured creditors, who would have been protected in some fashion given their status, got zip. Bondholders, although this one is still being argued in court, got zip. The gummit got control in the form of “new” shares and the UAW got a truckload of those new shares as well, as well as virtually no meaningful changes to their contract. As usual with TheWon, he flipped convention, as well as the law, on it’s head. And he protected his friends in the process.
So, today – interesting timing huh? – it comes out that there is an interesting distribution of funds from the GM IPO (another subject altogether). From the Washington Times…
General Motors Co.’s recent stock offering was staged to start paying back the government for its $50 billion bailout, but one group made out much better than the taxpayers or other investors: the company’s union.
Thanks to a generous share of GM stock obtained in the company’s 2009 bankruptcy settlement, the United Auto Workers is well on its way to recouping the billions of dollars GM owed it — putting it far ahead of taxpayers who have recouped only about 30 percent of their investment and further still ahead of investors in the old GM who have received nothing.
The boon for the union fits the pattern established when the White House pushed GM into bankruptcy and steered it through the courts in a way that consistently put the interests of the union ahead of many suppliers, dealers and investors — stakeholders that ordinarily would have fared as well or better under the bankruptcy laws.
“Priority one was serving the interests of the UAW” when the White House’s auto task force engineered the bankruptcy, said Glenn Reynolds, an analyst at CreditSights. The stock offering served to show once again how the White House has handsomely rewarded its political allies, he said.
Union claims ordinarily do not receive such special treatment in bankruptcies.
GM stock closed at $33.45 on Wednesday. In order for the UAW will break even if they sell the remainder of their shares at about $36.00. We taxpayers will get our “investment” in GM back when the stock hits $52.00, and some estimates indicate the stock would have to hit $103.00 to break even. Don’t hold your breath.
Here’s why I love Glenn Reynolds, proprietor of Instapundit.com and a law school professor. Again, from the WaTimes article…
The White House “took a page out of the Putin political asset reallocation and reward system” when it engineered the deal, he said.
Mr. Reynolds also described the White House deal as a combination of “Boss Tweed on steroids” and “Hugo Chavez on meds,” as far as the bondholders are concerned.
And remember this as the next election cycle gins up. The unions WILL deliver for TheWon.