A few Highlights From The SIGTARP Report That Illustrate The Content!

The Auto Team first exerted their significant influence on GM by replacing GM’s CEO Rick Wagoner (who adamantly opposed bankruptcy) with Treasury’s choice, Fritz Henderson, a move that GM’s Board of Directors viewed as Treasury usurping their power. (Page 34)

One GM official told SIGTARP, “Ultimately it was that GM is not in control. And GM is totally dependent.” (Page 34)

Although the Auto Team’s role was supposed to be advisory for matters not requiring Treasury’s consent under the TARP Loan Agreement, ~~ According to numerous interviews of Auto Team and GM officials, the Auto Team “was persistently pressing” and “pushed” GM to take more significant actions than GM would have done on its own, actions in line with Treasury’s preferences. (Page 34)

The UAW came to the negotiations with a “hit list” of priority items that included New GM assuming the pension benefit guarantee (“top-up”) for the former GM employees at Delphi represented by UAW.  ~~ with Treasury as the majority owner of New GM ~~ the UAW’s president reportedly said, “We aren’t going to sit in this room if pensions are on your list.” At the end of two days, the UAW left the negotiations at an impasse. The UAW president called Auto Team official Ron Bloom the next day, and they made the overall deal for a new collective bargaining agreement. (Page 37)