Not too many investors want to own a stake of General Motors Corporation these days. And if they could invest in Chrysler - which they can’t, since it was never publicly traded - I doubt they’d be any more thrilled about the prospect.
But a lot of Americans aren’t any more happy about the government owning 60% of GM and 8% of Chrysler, especially since expert opinion just emerged last week that confirmed what we already knew… There’s no way that the companies will be able to pay back all of the taxpayer money the government loaned them.
Four people who have taken special issue with the Obama administration’s handling of the U.S. automaker industry, are Senators Lamar Alexander of Tennessee, Minority Whip Jon Kyl of Arizona, Robert Bennett of Utah and Judd Gregg of New Hampshire, all Republicans. The way they figure, since they’re in a position to actually do something about their grievances, they’re going to propose their own alternative.
Though they haven’t officially presented it to the president as of yet, the foursome introduced legislation today that would convert government (i.e. taxpayer) investment in the two bankrupt companies, into company shares. Those company shares would then be divvied out to the 120 million Americans who submitted tax returns for 2008. Originally concocted by Alexander, the plan calls for the switch to be finalized no later than one year after GM emerged from Chapter 11 bankruptcy.
“This is the fastest way to get the stock out of the hands of Washington and back into the hands of the American people who paid for it.”
His is hardly the first voice of dissent over the matter. House Republicans have repeatedly called for hearings on the use of financial-rescue funds on GM and Chrysler, and just recently, Rep. Jeb Hensarling (TX - R) said that the Troubled Asset Relief Program congressional panel would hold a hearing on the matter in the coming months. Since he sits on the panel, he would hopefully know.
Thursday, June 04, 2009 - by Jeannette Di Louie, Assistant Editor, Mt. Vernon Research
