Finally....Some One With Some Common Sense
Obama Team Said to Explore `Prepack' Auto Bankruptcy (Update1)
Nov. 21 (Bloomberg) -- President-Elect Barack Obama's transition team is exploring a swift, prepackaged bankruptcy for automakers as a possible solution to the industry's financial crisis, according to a person familiar with the matter.
Obama's team has already contacted at least one bankruptcy- law firm to say that Daniel Tarullo, a professor at Georgetown University's law school who heads Obama's economic policy working group, would call to discuss the workings of a so-called prepack, according to this person.
U.S. lawmakers yesterday postponed until December a vote on whether to give General Motors Corp., Ford Motor Co. and Chrysler LLC a $25 billion bailout as an alternative solution. Automakers such as GM could use court protection to reduce debt and reject unfavorable contracts.
``It creates the environment to deal with GM's problems but limits government financial commitment,'' said bankruptcy lawyer Mark Bane of Ropes & Gray in New York. (link to complete article)
I've been personally calling for bankruptcy and reorganization of the auto industry for months now. Throwing $25 billion at an industry that refuse's to change or even adjust to conditions around them is simply a waste of taxpayer dollars. Who ever has made this suggestion on Obama's team needs to stick to their "guns" on this issue. And some one needs to follow the lobbyist money.