BK the Better Option for Big 2.00015

Given the Barney Frank plan (below) or bankruptcy, which would YOU choose?

Long-Term Restructuring Plan – Not later than 3/31/09, loan recipients must submit to Treasury acceptable restructuring plan for long-term viability and international competitiveness, including fuel efficiency standards and advanced technology vehicle manufacturing, rationalization of costs, and proposals for restructuring existing debt.

• Oversight Board The Financial Stability Oversight Board (Oversight Board) established under EESA will provide oversight of the loan program, and will have four additional members for purposes of the loan program (Secretaries of Energy, Labor and Transportation and the EPA Administrator) in addition to the five existing members (Fed Chairman, Treasury Secretary, FHFA Director, SEC Chairman, and HUD Secretary).

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• Warrants – Treasury must obtain warrants from each loan recipient (or economic equivalent in the case of a privately held firm) equal to 20% of the loan or such greater percentage as may be determined by Treasury in consultation with the Oversight Board.

• Executive Compensation and Corporate Governance – All executive compensation restrictions from EESA apply to loan recipients for the duration of the loan plus the following additional restrictions:no bonuses to employees making more than $200,000 (which Treasury will adjust for inflation). no golden parachutes under any circumstances. no compensation plan that could encourage manipulation of reported earnings to enhance compensation.

• Ability to Prohibit Transactions, Oversight of Financial Condition – For duration of the loan, Treasury in consultation with the Oversight Board will have the authority to review and prohibit any asset sale, investment, contract, or commitment proposed to be entered into by the recipient valued in excess of $25 million.

If you think that having Barney Frank as the de facto Chairman/CEO of GM, FoMoCo, and Xler is a recipe for success, you deserve whatever you get.

Anyone with the common sense of a rabbit, however, will choose bankruptcy. Or water-torture.

By the way, Barney envisions at least $100 Bn in loans, not $25 Bn.