Proposed Legislation Will Offload GM And Chrysler Stock Into Taxpayers Hands

U.S. Congressional Republicans introduced legislation Thursday to convert the government's investment in General Motors Corp. and Chrysler LLC into company shares that would be distributed to every American taxpayer.

The legislation, pushed by four Republican senators, would subvert the Obama administration's plan for the U.S. government to take a 60% ownership stake in GM and 8% in Chrysler. Instead of the government holding the shares, the Treasury secretary would be required to distribute GM and Chrysler stock to the roughly 120 million Americans who submitted tax returns for 2008, said Sen. Lamar Alexander, R-Tenn., the proposal's author. The secretary would have one year to complete the task once 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," Alexander said.

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Joe_Limon - 6/8/2009 6:32:19 PM

0 Boost

They weren't free for you ;) they were a forced buy, if you cash them in now you may or may not get all of your money back. And by handing out the stocks like this, I am guessing you aren't the only one who is going to be selling... in otherwords I think GM shares are gonna tank harder. Maybe 10 cent shares? Thats a good time to buy into this goverment funded company.

SP2Hybrid - 6/8/2009 7:06:13 PM

+4 Boost

Since the article submission route does not seem to work (not sure why you Autospies guys are staying away from meaningful albeit political debate and choose instead to flame around petty little topics), here it is again:

Supreme Court Justice Ruth Bader Ginsburg just delayed Chrysler's sale to FIAT. This may be the beginning of the overturning of the strong-arm maneuvers of the administration. It may very well give the creditors a fighting chance to recoup their investments as well as give Chrysler a chance to be acquired by one or more capable bidders rather than be gift-wrapped (on your dime) and thrown over to the worst European manufacturer.

Wouldn't you rather debate this here as opposed to the usual "Brand X is superior to Brand Y" rants?
Any takers?

jeffy210 - 6/8/2009 10:18:28 PM

+1 Boost

Oh, but don't forget, we'll tax you again on the income you get from selling your stocks...