Williams: UAW To Be More Open Before Members, Public

@TW5 The UAW received billions from TARP? I don't recall the UAW receiving any money from TARP. Perhaps you could expand on that statement with more details.

Mikey, Stop raining on Ayn Rand's parade with your pesky facts.

@mikey Maybe I can help out. As part of the bankruptcy proceedings for GM and Chrysler, the UAW was given major stakes in the new companies. Both of the original companies were deeply bankrupt, with GM having twice as much in liabilities as it had in assets. It was less than worthless. No for-profit lending entity was willing to finance restructuring, as for-profit banks like making profits. The UAW did not finance the restructuring. So the US Government, in an attempt to preserve jobs, used TARP money to finance the restructuring with full understanding that they were probably losing money in the process. The UAW sold off their shares in new GM and new Chrysler that were financed by TARP and received billions. The US Government sold off the shares they received in return for TARP financing and lost billions vs. their initial investment. Although not directly in the form of a check, the net effect of the UAW receiving shares in a company financed by TARP that they sold for billions of dollars is that the UAW received billions of dollars from TARP.

@lne937s Is being inaccurate an acquired skill, or does it come to you naturally?

@lne937s Nope. Not even close. The decision was to consider the pension fund a creditor is not a new or revolutionary idea, so when the assets were divided up the UAW was given the value of shares based on the evaluation of their shortcomings. In short you're confusing TARP with the Auto refinancing bill. They're two different bills and technically the auto refinancing bill made money (or broke even) for the government as they sold off shares to replace their costs. So the UAW was actually owed more, settled for less, and the right is still whining.

@lne937s Not helpful. The UAW didn't get "shares". The VEBA was forced to take equity in lieu of the cash that was due to it from GM and Chrysler to fund retiree health care Neither the VEBA nor the UAW received TARP funds.

@mikey Interesting to see a Union, being up to date with Social Media etc. My experiences is they tend to be laggards in this area, structure of the Union does not help

@lne937s Thank you for saving me the trouble, Ine937s.

@TW5 It's odd to thank someone for such an inaccurate comment.

ect... Regardless of the reason why the UAW got equity in new GM, the fact remains that the UAW received equity in a company that exists only because it was financed by TARP. And while the UAW was owed funds, so were a lot of other people. Part having twice as much in liabilities as assets means you owe people twice as much as what everything you own is worth. Outside of the UAW/VEBA, most of those creditors got little to nothing. Now, if the UAW did not get equity funded by TARP and GM/Chrysler were liquidated, the taxpayers would have still been on the hook. In that case, the pensioners would have been paid out of the Pension Benefit Guarantee Corporation (PBGC- a government agency) directly, rather than through the UAW. However, this would have likely meant less in benefits for the pensioners, potential bankruptcy of the PBGC fund, and probably more total cost to the taxpayers. So, they were stuck between a rock and a hard place. No doubt, this was a factor involved with giving out equity to the UAW versus GM's other creditors in the bankruptcy negotiations. However, GM's other creditors were still left holding the short end of the stick. In the end, the restructuring was lesser of two evils. However, GM should not have been allowed to get in such bad shape and the taxpayers should have been better protected.

ect, What you are neglecting is that if TARP did not finance the restructuring of GM/CHrysler, the UAW/VEBA would likely have gotten nothing. They were not "forced" to take equity-- they negotiated for it. Many creditors GM/Chrysler owed money to got nothing. If the UAW hadn't received billions in equity in the restructured companies, the retirees would likely have gotten compensation from PBGC, although directly, at a likely higher net cost to the government, potentially bankrupting the program, and likely at a lower rate of pay to the pensioners. No doubt, this "rock and a hard place" position was a factor in the UAW's compensation. But regardless of why or the potential justifications, the fact remains that the UAW/VEBA received equity they sold for billions as a result of the money-losing TARP financing of GM/Chrysler restructuring.

@ect Ine937s, your interpretation of the facts is indeed accurate and held by a very large number of movers and shakers within the auto and financial industry. GM/Chrysler were troubled assets and without TARP the UAW would also have sucked hind teat.