 GM and Chrysler Team Up to Shake Down U.S. Government |
The merger talks between GM and Chrysler took another odd turn - CNBC is reporting that the two companies have asked the U.S. Government for a $10 billion rescue package.
The government funding would include roughly $3 billion in exchange for preferred stock in the merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly.
The U.S. Treasury Department is considering a request for direct aid to facilitate the merger and a decision could come this week, sources familiar with the still-developing government response said earlier on Monday.
An injection of $3 billion in equity to support a GM acquisition of Chrysler would be roughly equivalent to the current, depressed value of the top U.S. automaker.
It would also give U.S. taxpayers a large stake in the turnaround of a struggling auto industry that employs over 350,000 American workers and is credited with supporting employment for another 4.5 million in related fields.
Wow.
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| mkaresh | Posted: 2008/10/29 18:16 Updated: 2008/10/29 18:16 |
Just popping in   Joined: 2008/10/29 From: Posts: 2 |
 Re: GM and Chrysler Team Up to Shake Down U.S. GovernmentCan't seem to find anyone in favor of this.
The largest shock for me, though, was hearing today that GM is stopping nearly all work on future products. Stupid unless they expect to die. |
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| Tvshooter | Posted: 2008/10/29 17:44 Updated: 2008/10/29 17:44 |
Just popping in Joined: 2007/9/13 From: Posts: 4 |
Re: GM and Chrysler Team Up to Shake Down U.S. Government This is just a lose lose situation. We bail GM and Chrysler out, they layoff American Workers. We let them Fail we lose American Jobs! If the tax payers are to bail out GM and Chrysler, they should be forced bring back jobs they shipped to foreign markets to save money! Here is a simple concept the government might consider, the more higher paying American Jobs we have, that would increase the amount money they can waste!
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| Ingela | Posted: 2008/10/29 17:21 Updated: 2008/10/29 17:21 |
Not too shy to talk  Joined: 2007/12/12 From: Posts: 30 |
Re: GM and Chrysler Team Up to Shake Down U.S. Government It's good to be big.
Little companies go under everyday, with ugly threats from the IRS, and creditors. It's sad that taxpayers have to pay for their mistakes, and the key word is mistakes! It's not like they haven’t experienced any of these situations before, gas prices, competition from foreign car makers etc. I don’t mind us saving them as much as I mind saving Wall Street’s corrupt. |
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| 01TJ | Posted: 2008/10/29 14:19 Updated: 2008/10/29 14:19 |
Just can't stay away  Joined: 2006/8/25 From: Posts: 71 |
Re: GM and Chrysler Team Up to Shake Down U.S. Government What a joke! Another failed company asking for a handout from tax payers. And to do what? Buy another failed company!! This is ridiculous! Until we just let these companies fail they will continue to conduct bad business practice and then ask for more and more money in bail outs. They basically have this country by the short and hair. At some point we just need to cut our losses and let them fail, most of the employees are union and will get paid 80% or more of their current pay when they get laid off anyway. Although if Obama gets elected we'll be a socialist country anyway so what does it matter.
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