On June 1 2009 General Motors filed for bankruptcy, forcing the 100 year old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership.
When a company goes bankrupt, everyone takes a hit: fair or not, workers lose some contract wages, stockholders get wiped out and creditors get fragments of what's left. That's the law. What workers don't lose are their pensions (including old-age health funds) already taken from their wages and held in their name.
But this time I smell a rat!!
Steven Rattner (Barack Obama’s Car Czar- the man who essentially ordered GM into bankruptcy) has a different plan for GM: grab the pension funds to pay off Morgan and Citi.
While workers are losing their retirement health benefits, their jobs, their life savings; while shareholders are getting zilch and many creditors getting hosed, a few privileged GM-lenders led by Jamie Dimon’s (Class A director of the Board of Directors of the New York Federal Reserve, a three year term which started January 2007 and CEO JP Morgan Chase) JP Morgan and Pandit’s Citibank expect to get back 100% of their loans to GM, a stunning $6 billion.
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