“What is good for General Motors is good for America” Charlie Wilson, CEO of GM, 1955.
Maybe the country will follow GM in to bankruptcy as well…
The storied American car maker, which by some estimates employs one out of every ten Americans will head to bankruptcy tomorrow morning. It will be restructured by an Obama appointee, after negotiations, bail out money and loans failed to keep the bloated corporation afloat.
Americans will end up owning the corporation, as the Treasury Department will take a 60% stake in the company by providing more than $50 billion in loans (that don’t need to be paid back).
The company will be delisted from the DJIA and shareholders will be wiped out.
From The Detroit News:
GM, the storied 100-year-old Detroit automaker that once was the world’s largest company, was forced into bankruptcy by the administration after losing $88 billion since 2005. The company ran out of money in late 2008 before being rescued by $13.4 billion in government loans in the waning days of the Bush administration.
“Today will rank as another historic day for the company — the end of an old General Motors, and the beginning of a new one,” the White House said in a fact sheet.