GM CEO: “It’s not like I’m in charge, here.”

Posted by Marc Hodak on May 4, 2009 under Politics | Be the First to Comment

Fritz Henderson is nominally in control of GM.  He’s, you know, the CEO.  In theory, that means he also has a fiduciary duty to his investors.  So, when he gets a proposal from certain of his creditors that they will not accept getting flucked sideways by accepting 10% for their $27 billion in debt while other, more Democrat-like creditors would be getting 39% for giving up $10 billion in junior claims, why, he’s supposed to consider their arguments against some standard, preferably a reasonable one.

Henderson’s response:  Sorry, I can’t give more than 10 percent to the bondholders.

“It’s outside of what the Treasury has told us they would support,” Henderson said. “It’s about as factual as I can be.”

Translation:  The politicians are in control.  And we all know who controls them.