Treasury’s Role in the Decision for GM to Provide Pension Payments to Delphi Employees SIGTARP 13-003 August 15, 2013

“The U.S. Department of the Treasury’s (“Treasury”) injection of Troubled Asset Relief Program (“TARP”) funds in General Motors Corporation (“GM”) and Chrysler Group LLC (“Chrysler”) was the only bailout with a President’s Designee overseeing the companies’ restructurings – the Presidential Task Force on the Auto Industry (“Auto Task Force”). The Auto Task Force delegated the responsibility for GM’s restructuring to four primary officials who were part of an Auto Team led by Steven Rattner. GM’s bankruptcy would be one of the largest and fastest bankruptcies in our nation’s history. A new company, “New GM,” emerged from GM’s bankruptcy in July 2009, with Treasury owning 61% of its common stock. New GM purchased substantially all of GM’s assets while leaving behind many of its liabilities. One of the liabilities that New GM agreed to honor related to the pensions of certain former GM employees paid an hourly wage and represented by certain unions, and who had worked in GM’s automobile parts division that was spun off into Delphi Corporation (“Delphi”). The four Treasury Auto Team officials made it clear to SIGTARP that the decisions made and Treasury’s role related to Delphi pensions had to be viewed in the broader context of GM’s restructuring.”