KAKE - Money - Headlines

GM Bankruptcy Raises Questions

By: Associated Press Email
By: Associated Press Email

Stay up-to-date with KAKE News:

Tuesday, June 2, 2009

The government ownership of a majority of General Motors raises new questions about capitalism, politics and the economy.

Ira Milstein, a senior partner at GM's bankruptcy law firm, says it's uncharted territory.

Milstein says there's no book of instructions on how to run a government-owned private company.

Washington says it will stay out of day-to-day auto decisions. But bankruptcy lawyer Jerry Reisman, who's not involved in the case, wonders what happens if management wants to buy parts overseas. Reisman says that could put GM's board in conflict with its government owners.

GM's CEO Fritz Henderson says federal ownership will last, in his words, "years not months."

But he predicts GM will rocket through the bankruptcy process.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
KAKE TV 1500 N. West Street Wichita, KS 67203-1323 (316) 943-4221
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 46718667 - kake.com/a?a=46718667