Shelby assails large gov’t role in General Motors
Top Banking panel GOP member raps large federal stake in financially beleaguered GM Corp.
* On Friday May 29, 2009, 8:27 am EDT
* General Motors Corporation
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WASHINGTON (AP) — Sen. Richard Shelby said Friday the government should have allowed the marketplace to decide General Motors’ fate and that the huge federal stake in the company puts Washington on “the road to socialism.”
Shelby, ranking Republican on the Banking Committee, argued that the financially beleaguered GM could have saved “lots of money” if it had chosen six months ago to file a Chapter 11 bankruptcy petition.
“What I worry about” is Washington’s large interest in the company, the senator said in a nationally broadcast network interview. “It’s basically going to be a government-owned, government-run company … a company that has been sadly run into the ground.”
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IMHO, the gooferment has no right to steal from the bond holders their rightful value. It would seem that there is a Fifth Amendment (“takings”) suit here.
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