Gee you know GM issued the official you know it's kind of like the old Soviet era Politburo line we are very good life as well essentially what they said is the deal that they announced this morning. We it's 20% of the -- as we should put out seem to be on board -- But the deal they announced they've said that this will give General Motors a chance to emerge with a healthy balance sheet and -- they suppose that they said long term viability the problem. Is that the government was always leave requiring 90% of the bondholders. To be on board and he could still have some of these you know people will hold General Motors dead. Try to create some kind of litigation once a General Motors is in bankruptcy you know they're expected to file on Monday. And try and slow down this whole process is that going to be a much bigger bankruptcy filing that we saw with Chrysler and although we keep hearing the government talk about that. 363 sale an expedited sale of General Motors quality assets to some kind of new company gets a new Coke that's Chrysler. You we need to come up maybe -- have a contest for a new name for General Motors . It might be a little bit different than what we're seeing in the Chrysler but right now everyone seems to be excited
Isn't Seattle not the least of which would be General Motors -- spent a lot of time talking about in the next hour with the ideal now in place. -- with the bondholders the General Motors bankruptcy can move forward in what the hope is at least will be quicker. And fashion than it would have that it would have been if that deal was not a place -- all the metrics about what that deal or and or agreement means. For the bondholders and for its customers -- General Motors and everything else were actually -- dealer which is always great to to get that kind of perspective from out. In Detroit matters here is that Detroit that the GM headquarters in all that's coming up next.
of property right here our top stories of the day of course General Motors . I think you're exactly right so. All the -- GM obviously -- top story economic wise and for the for the nation as all of it certainly you know that's. It jumps out may not be the biggest market moving story but clearly yet General Motors site and we've been expecting -- things to get heated as we got down the wire and certainly it has been an
and beyond that deaths. As part part of the consolidated debt that GM -- the new GM would emerge from bankruptcy on 17000000008 billion of that to the treasury nine billion in preferred stock treasure would have two and a half billion shares of this preferred stock which would reap dividends. As a repayment. And be good for the bondholders potentially they actually. Read statements right right that that's retired at the sweetened deal for them but they wouldn't be able to -- 15%. And act actually of common stock is -- get the dividend and it's well third or if GM declared a dividend right now. Yeah we don't know what that news -- that new General Motors and look like in a lot of ways but not least of which is the investment. He called that General Motors is which is the point of that the current stock price will be worthless because those shares was go away -- here
the markets -- great to have you on impressions on the whole General Motors talk in this deal getting done. With the bondholders anything that you know surprise due to an extent all of us. Well it's it's funny yesterday -- GM came out and there was an announcement that there'd be no. Renegotiation. And no change in the terms of the of the
idea will be added this is the idea if Mari whether it's General Motors or whether it's you know a lot of the bank bailout program is an exit strategy in all of this mean how
couple things to do Detroit's argument on -- out of headquarters for General Motors today --
which I guess well. If any -- that speaks to the situation General Motors and if if nothing else that your production before but the the idea now that did deals in place supposedly with the
things up you know I I'm not so sure it does. Look General Motors going to probably file bankruptcy that's no secret everybody expects that to happen the question is how quickly can -- and it's not as if GM going to emerge from bankruptcy some new form of General Motors is what's going to emerge. Kind of like in that the movie alien with a creature comes out of the stomach. You
there. Jeff that I heard -- for madam when news reporting from. General Motors headquarters and people dealing in reality here you can I think the words are just use we didn't have a choice and
found -- we retired in our board -- were even talking about General Motors is an investment. Talk about its common stock and but you know this could be as soon as and you know some bond investment whatever the case may be what would you take into account. Coming out of this when it you know assuming General Motors will be publicly traded company again it'll be new shares issued is most likely the way it'll play out and and people you know that company will most likely issued debt and what what would you take into account when considering. The investment in in General Motors .
this as a very safe investment Jenna went through some statistics about General Motors market share in the 1950s and what have you. And now if you save rebuilding that trust in General Motors as a corporation. Wow and how long it'll take.
that to have proceeded and -- that same thing happen here for General Motors .
the possible investment of up to forty billion dollars in the restructured. General Motors again reporting of Peter -- down in Washington today okay. Let's get the Fred and make the third out in Denver Fred is seven is dealer he owns. And the Chevrolet -- folks wagon third generation dealer so we've stuck in the third Fred because analysis of family business it's been here for. For a long time give me your thoughts mean and guy Chevy dealership out there and now we have. All but certainly in the General Motors bankruptcy filing albeit one that seems to have agreements from a lot of the parties that are in place what's the future
starts pressuring me. Well I understand the government screws every 2% a General Motors if they do they want -- know that. Absolutely so -- and and you're saying consumers essentially wants something for nothing what
in this economy. Even with what you see going on with a General Motors today even with the government intervention. But dot com I actually have to wrap it up right now because I know that
members there's represented and Jeff gets into some of those. Plans for General Motors but if you know anybody that -- said. What it is auto plants down south that is from foreign automakers be great
about that we were you were mentioning earlier about the difference in General Motors . Market share between 1950 right today and we have a -- guys we should put this chart up that our good friend Charlie grace and out on the board and the minute. About the difference in GM's market cap. In the last ten years it really it is absolutely staggering to think about General Motors -- sixteen billion dollar company just in the year 2060. Billion. And worth 700 million as we're talking to you today seven
April the auto task force put forward this idea of a good GM bad GM and 363. A bankruptcy filing would we knew that idea yeah and it seems like the administration is getting -- used to the idea that an iconic brands like General Motors would file for bankruptcy the question I have for everybody out there is. What do you make of it now that it's actually here. Did you get used to the idea and now well was pretty good marketing and branding campaign we knew it was coming you were expecting it now reality comes -- we're not as emotionally involved. The American public kind of sick of it in the news once again it out of it or are you actually still has affected today as he works six weeks ago -- feel about the General Motors -- today because a big part of the argument to -- General Motors in business and use taxpayer money has been. The -- the public feels about it so that's why. I'd like to hear
putting up you know thirty to fifty billion dollars in loans to General Motors to help bail them out right in return for that they're paying off their loans.
and told us that Pepsi's market cap is now a hundred times General Motors still try to get an idea of exactly what all of this means and on your point -- we talked about government intervention in trying to make a smart investment -- duties gays and Sheila -- is is commenting that -- DIC chair. That they're having trouble in the banking sector because that game still keeps on shifting so. What is the message coming from the government now that we would know that the treasury has 70%. The new General Motors is it that you really want to be a bond holder that you you don't want to own common share of any
there's only one S&P 500 company with a smaller market -- General Motors .
to spend on it today as -- who would've liked as a General Motors would. What's going on here and what do you make it. Yet they just -- I mean.
