“General Motors once stood as a proud symbol of American economic power and industrial might. Today’s announcement of GM’s bankruptcy is the unfortunate result of decades of corporate mismanagement and bloated, unmanageable union contracts that made GM uncompetitive in the crowded global auto market.
I believed bankruptcy was the best option for GM last year. I still believe GM should have entered into bankruptcy long before the government decided to subsidize the failing company with billions in tax dollars. Now after the dust settles from what will be the largest corporate bankruptcy in American history, the federal government will own a 60 percent share of the new General Motors at the expense of private bondholders and individual investors.
Can anyone actually believe that the federal government will do a better job running GM than the private sector could? By taking an ownership stake in the company, the Obama Administration has directly involved the American taxpayer and the federal government in something it should never be a part of - rebuilding and running an American corporation.
If the Obama Administration is serious about restricting its role in the day-to-day operation of GM, it must be completely transparent about the decisions it makes and how much of our money is being used to rebuild the company. The American people and their Congress should expect nothing less.”