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Mnpaul

(3,655 posts)

5. What really got GM into trouble

Reply to jmowreader (Reply #4)

Tue Feb 7, 2012, 02:37 AM

Feb 2012

They were dipping into the pension funds big time to make the bottom line look good giving out big executive pay packages and dividends for the investor. When they changed the rules in the 90's and GM was required to put the pension funds on the books, they issued 9 billion in bonds at 7% hoping to invest it and make 9%. They invested in dotcom and lost their butts.

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