Monday, June 01, 2009

Obama Plan Makes GM's Secured Lenders Whole

While lenders in Chrysler's bankruptcy received 29 cents on the dollar, GM's secured lenders will take home a whole buck, according to sources familiar with the government's plan. The WSJ reported GM's $6 billion in loans will be repaid in full.

GM's largest lenders include banks like J.P. Morgan Chase & Co. and Citigroup Inc. and Credit Suisse.

The government funneled tens of billions in taxpayer money through AIG to some of the same and similar firms. It drew the line at Chrysler calling hedge fund investors "speculators." Now, it's back to shoveling billions to favored institutions via GM.

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