Uncle Sam Gives UAW $10 Billion for VEBA, 17.5% of GM, $2.5 Billion Cash, $585 Million Per Year

The UAW's bribe.
Uncle Sam Gives UAW $10 Billion for VEBA, 17.5% of GM, $2.5 Billion Cash, $585 Million Per Year http://www.thetruthaboutcars.com /
The Wall Street Journal [http://online.wsj.com/article/SB124335377570854805.html ] reports the terms of the United Auto Workers (UAW) deal with the feds re: their payoff to join post-bankruptcy ”good” GM. Uncle Sam will “contribute” $10 billion to the union’s Voluntary Employee Beneficiary Association (VEBA) health care superfund, paying off half of GM’s unfunded obligations in one fell swoop. The Treasury Department will also give the UAW a $2.5 billion promissory note. GM (i.e., the federal government) will pay off the note in cash, in three installments (2013, 2015, and 2017). And just in case that’s not enough to entice the union to join “good” GM, the UAW will also receive 17.5 percent of the new post-C11 GM (no longer a controlling interest) AND stock warrants for an additional 2.5 percent of the reorganized company. The $6.5 billion in preferred stock includes a nine percent cash dividend—that will pay out $585 million annually. Saying that, this is all subject to a federal bankruptcy judge’s approval.
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Civis Romanus Sum

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Boy, are the lawyers going to be busy for a very long time.
It is now only a mater of time before the supreme court gets involved.
In US, investors have no rights, other than to be abused.

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When you and Dave get together, which one plays the "man"?
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