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Economic Outlook: Nag, nag, nagging GM
Despite assertions from the White House that President Barack Obama's administration had no interest in running major U.S. companies bailed out by billions of taxpayer dollars, various lawmakers on Capital Hill have found going to bat for their constituents justification for doing just that, The Wall Street Journal reported Thursday.
GM emerged from bankruptcy this summer 60 percent owned by the federal government. Since then, lawmakers have intervened with the company on behalf of individual dealerships, union truck drivers and a supplier of palladium, which goes into catalytic converters, the Journal said.
Several lawmakers, including Sen. Sheldon Whitehouse, D-R.I., are pushing to reverse a bankruptcy court decision that allowed GM to duck obligations to an environment program that removes mercury from cars on their way to the junk yard, the Journal reported.
The lawmaker's impulse to nag GM has gotten so pervasive that Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., have proposed setting up an independent trust to hold shares of companies now in the government's possession.
"What I like about this is that it would move us away from meddling in these companies," Corker said.
Lawmakers' sentiment might best be summed up by the chief executive officer of Stillwater Mining Co. in Montana, the palladium supplier with a contract nullified by GM's bankruptcy proceeding.
With lawmakers going to bat for Stillwater, "I think that business should stand on its own," CEO Frank McAllister said.
However, like many others, McAllister said the rules changed when "GM went to the public trough."
With the call to save jobs for constituents, lawmakers have lobbied to save factories in their districts and, in one case, introduced a dealership owner to GM's Chief Executive Officer Fritz Henderson at a hearing in Washington.
In total, while GM has said it would cut 1,400 dealerships to streamline its retail operations, the company has reversed its call on closing 70, the Journal said.
A GM spokesman said "being responsive to members of Congress while moving forward on our business plan is the best way to repay the nation's support."
Is that politeness or real gratitude? Many of the nation's banks returned their bailout funds as quickly as possible to escape restrictions, including limits on executive paychecks.
The heart of the issue is who should run the companies that need to return to making a profit to repay the government billions of dollars?
Sun Bankcorp Inc. Chief Executive Officer Thomas Geisel said "lawmakers let emotions and ego get in the way of making good business decisions" but not everyone agrees with that.
"I was elected to represent the interests of Montana, not General Motors, which is something that GM should have considered before letting the federal government assume control of their company," Rep. Rehberg, R-Mont., has said.
Copyright 2009 by United Press International
This news arrived on: 10/29/2009
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Posted Comments:
11-02-2009 09:28
ssssssssss wrote:
And casey sounds like a closeted kkker. Thats all he has on his mind, EVERY POST.
10-31-2009 12:47
JDB wrote:
casey42
Better to have let them fail and to have used the bailout monies for the unemployment payments to the people who would have lost their jobs than to subsidize auto companies with taxpayer money to produce cars that will NOT sell. It may make sense from a politician's standpoint, but it is not good business sense. It DOES matter what the Democrats do and, yes, you are right, when they are wrong they deserve to be upbraided for it. If the design engineers don't have smarts enough to keep up with the foreign competition, why should the American taxpayer pay for it? H-E-L-L-O?????
10-31-2009 11:24
casey42 wrote:
ssss: the sound a snake makes.
All the KKKers of the righht wing are sounding off loudly, if the government hade of allowed GM and other major corporations to collapse and their employees to become homeless on welfare rolls how loud would they have been complaining then? It doesn't matter what the democrats do the obstructionists on the right will scream and cry like little babies.
All the KKKers of the righht wing are sounding off loudly, if the government hade of allowed GM and other major corporations to collapse and their employees to become homeless on welfare rolls how loud would they have been complaining then? It doesn't matter what the democrats do the obstructionists on the right will scream and cry like little babies.
10-31-2009 10:37
Redneck Again wrote:
Seriously
John Z Delorean wrote a book titled "on a Clear Day You Can See General Motors". In his book he detailed the "old Boy" inherited power structure at GM. It's not a competative industry---it's a Club! More interested in status and how much they can syphon off for their personal fortunes! "This company is Too big to fail" there is enough loot for everybody! And from my own opinion--- They didn't improve their product, but relied on advertiseing to sell it! But after the neighbors' Toyota still runs the 5th year without any problems---and your 5th Chevy is towed to the shop again ("while your waiting for parts, let me give you a test ride in a NEW one! we can make the payments the same as you are paying now??) If you aren't swayed by "BUY AMERICAN" You aren't fooled again !!!
10-31-2009 09:42
sssss wrote:
They will never pay that money back. They already said so. Money down the drain. And I dont beleive they will ever give up control even if they tried to give the money back. This is what the enviros want, control of anything with oil. I can tell you, I would never buy a car from a company the government runs or as long as its in the hands of the UAW illegally. So I dont beleive this company will ever be back strong. I think in five years it will fail again.
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