Glassman says GM bondholders would get just 10 percent of a new GM, while the auto workers’ union would get 17.5 percent of its stock.
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A former Bush administration official says the Obama administration is like “an irresponsible third-world regime, skirting the law and handing economic prizes to political cronies.”

In an op-ed article published in Saturday’s New York Times, former Under Secretary of State for Public Diplomacy and Public Affairs James K. Glassman wrote that credit markets have been damaged for the long term because of the “Obama administration’s attempts to reward the United Auto Workers, one of the president’s strongest supporters in the last election, while trampling decades of legal precedent regarding owners of corporate debt.”

Chrysler filed for bankruptcy protection in April, and GM is likely to do the same by Monday.