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GOP Lawmakers Push Geithner on GM 'Main Street' Bondholders' Behalf

Yesterday, The Ticker reported on the case of General Motors' self-described "Main Street bondholders:" Those Moms and Pops who bought safe-seeming GM bonds and that collectively hold $7 billion worth of the company's debt.

They are complaining that the government-backed plan for GM's bankruptcy/restructuring would give them a comparatively small equity stake in GM in return for their bonds -- a much smaller stake than the United Auto Workers union will get based on the debt it holds.

Today, four Republican lawmakers are taking up the cause of the Main Street bondholders and telling Treasury Secretary Tim Geithner they deserve a "seat at the table" as GM's future is being formed.

Republican Reps. Jeb Hensarling (Tex.), Eric Cantor (Va.), Mike Pence (Ind.) and Pete Sessions (Tex.) sent a letter to Geithner, reading: "We are extremely concerned that in the name of restructuring General Motors, the presidential task force on the auto industry . . . has begun waging what some believe amounts to a war on capital: contractual rights of investors are being trampled by the government under the rationale of 'extraordinary circumstances,' " Reuters reported.

-- Frank Ahrens
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By Frank Ahrens  |  May 22, 2009; 12:06 PM ET
Categories:  The Ticker  | Tags: Eric Cantor, GM, Jeb Hensarling, Mike Pence, Pete Sessions, UAW, main street bondholders  
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Next: May 22, 2009

Comments

As the vice chairman of the Fed’s Open Market Committee, Geithner is probably a poor choice to get the nation out of it’s current economic mess. He served as Alan Greenspan’s number two man at the Fed, so Geithner is as responsible as anyone for facilitating the severity of the real estate and financial bubble and its subsequent collapse. As Econochristian.com shows, under Geithner and his predecessor (former Goldman Sachs CEO Henry “Hank” Paulson), the majority of bailout funds have been awarded to high-level donors to Geithner’s former employer: the Council on Foreign Relations (CFR).

Posted by: captjason80 | May 22, 2009 1:27 PM | Report abuse

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