| Whether General Motors Corp. or Chrysler LLC file for bankruptcy, the Obama administration wants to protect retiree health care to a greater degree than the debt of banks and bondholders, said a person close to the talks among the parties.|
That means that while bondholders are being pushed to take pennies on the dollar for their debt, the union remains on track to receive a substantial ownership stake in the automakers if deals can be hammered out.
In return, the UAW would forgive the automakers part of the $30.6 billion they owe the union to start a retiree health care fund that takes huge liabilities off the automakers' books.
So after billions upon billions of dollars wasted on GM, they declare bankruptcy, Obama forces bondholders and banks to take a beating while handing over GM to the union.
This is more of a criminal shakedown than an actual plan.