The U.S. Treasury Department will own a majority stake in General Motors Corp., have the right to appoint all of its directors and have veto power over all shareholder actions under the company's new restructuring plan unveiled today. The Obama administration hasn't agreed to GM's plan yet -- ahead of a June 1 federal deadline. "The administration has made no final decision regarding the treatment of its current loan to GM or with respect to any future investments in the company," the Obama auto task force said in a statement.
The dramatic move means that at least temporarily the U.S. government would have the right to call all of the shots at the Detroit automaker -- as part of its $15.4 billion in loans to GM to date. GM said today it expects to receive another $11.6 billion in loans from the government.
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