Bailing Out on the Environment

I know the GM bankruptcy is old news but there is one environmentally noteworthy component. Under the government orchestrated bankruptcy, GM has left many liabilities in "Old GM" and taken the assets to the "New GM". One of the liabilities left behind is $530 million worth of environmental liabilities. Unfortunately, "Old GM" only has $1.2 billion available to distribute. That adds another layer of costs to the taxpayer as they are now bailing out GM and paying for the cleanup of their polluted sites. This is not picking on GM, this is just the way the law works.

It seems that corporate bankruptcies are a way to leave behind obligations to society at large and take the best parts of your business and start over. The irony is that part of GM moving forward is creating "greener" cars that are more efficient and environmentally friendly. Hopefully they build them a little cleaner this time around, too.