Tuesday, May 26, 2009

U.S. to Nationalize GM?


From Bloomberg comes word that as GM gets set to enter bankruptcy protection on Monday that the restructured corporation that emerges will have the United States Government as the majority shareholder, noting that
The U.S. Treasury would get a majority of equity in a restructured General Motors Corp.

We live in strange times.

If anyone had suggested five years ago that GM would end up in bankruptcy and emerge from court protection nationalized they would have been tested for drugs. The Obama administration has already made one management decision, firing former CEO Rick Waggoner. It will be interesting to see whether they will continue in an activist role. And if they do, it will be even more interesting to see what the results of this are.

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