Quote from PocketChange:
The big difference is the Govt is the majority shareholder.
The tax loop holes were created by the govt prior to its investment in the failed GM for the benefit of preserving the Govt's interest into this new GM Sham company.
They don't need to buy legislation or lobby because they are the Govt.
There is such an obvious conflict of interest. There are laws enacted to protect minority shareholders... The govt owning a majority interest have a fiduciary duty to GM and all of its shareholders.
Anything it can control or use to benefit GM (Old and New) they are obligated to do so under their fiduciary duties as the controlling shareholder.
Each previous shareholder of Old GM can technically file a derivative lawsuit against the Govt as the majority shareholder for a plethora of claims (self dealing, conflict of interest, breach of fiduciary duty) that impacted the value of their shares.
The 363 transaction approved by the govt (Prepackaged bankruptcy) as judge, jury, beneficiary, shareholder etc where the govt stood to gain a benefit... Should get all of lawyers involved disbarred for obvious conflicts of interest.
These are by definition all sham transactions. A private company doing the same would be prosecuted for crimes.
Seriously, how hard would it be for new GM to show Billions in profits when they simply erase all liabilities?
