Handing GM to the Unions

Looks like the Auto Workers Union will get their reward for supporting Obama. Larry Kudlow has the details:

What is going on in this country? The government is about to take over GM in a plan that completely screws private bondholders and favors the unions. Get this: The GM bondholders own $27 billion and they’re getting 10 percent of the common stock in an expected exchange. And the UAW owns $10 billion of the bonds and they’re getting 40 percent of the stock. Huh? Did I miss something here? And Uncle Sam will have a controlling share of the stock with something close to 50 percent ownership. And no bankruptcy judge. So this is a political restructuring run by the White House, not a rule-of-law bankruptcy-court reorganization.

Kudlow has a lot more about Tim Geithner's cozy relationship with the bankers he's supposed to be regulating and the problems that will cause. Read it here.