Did the General Motors bailout violate any bankruptcy laws like the Chrysler bailout?

G

Guido

New member
The Chrysler bailout favored the UAW over secured creditors and that clearly violated bankruptcy law. Did anything like that occur with the GM bailout?
 
No, and neither did Chrysler. The UAW was one of the creditors/bondholders so it was perfectly legal for them to get stock in the exchange right along with the others creditors. GM owed the UAW a LOT of money for VERA that they rammed down the throats of the union member several years before the banking crisis caused all their recent problems.
 
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