GM CEO Wagoner to step down at White House request

[southwind]

DETROIT – General Motors Corp. Chairman and CEO Rick Wagoner will step down immediately at the request of the White House, administration officials said Sunday. The news comes as President Obama prepares to unveil additional restructuring efforts designed to save the domestic auto industry.

http://news.yahoo.com/s/ap/gm_wagoner

Part 2 tomorrow:

Obama announces "I'm the new CEO at GM" !

 

[delldude]

What a crock of ****.

Pelosi taking control of their jet fleet?

 

[FA Mikey]

If the share holders/institutional investors cannot or will not do the job, something finally has to give and there it is.

Bankruptcy doesnt work. The airline industry has proven that time and again. The weakest links bring down the viability of the stronger ones. Its a slow agonizing death for all involved.

Then you add to the fact we have companies in various industries that are essentially to large to fail. We are being held hostage by these behemoths. Teddy Roosevelt the trust buster is needed.

 

[nuclearfission]

If the share holders/institutional investors cannot or will not do the job, something finally has to give and there it is.

Bankruptcy doesnt work. The airline industry has proven that time and again. The weakest links bring down the viability of the stronger ones. Its a slow agonizing death for all involved.

Then you add to the fact we have companies in various industries that are essentially to large to fail. We are being held hostage by these behemoths. Teddy Roosevelt the trust buster is needed.

Your first sentence.......WHAT????? If they don't do it(shareholders/investors), The FACSIST Government can.....at it's "will"??? :rant:
Second sentence.....WRONG. The weak die, the strong survive. human nature, and the normal life cycle of humans/businesses.
Third Sentence.....Being held hostage??? Is someone putting a gun to your head to buy a GM product?....A GE appliance?....get a loan from an "institutional" bank?

good lord.......no wonder.....ohhh....never mind! :censored:

 

[nuclearfission]

Sorry to say BK worked fine for the airlines. As a consumer I pay the same or less then I did 20 years ago.

What didn't work fine is the Government intervention through ATSB which failed to allow economic Darwinism take its natural course. The industry has 2 more carrier then it would without ATSB loans. The industry is still wrestling with over capacity.

Capitalism is a system that has winners and losers, GM lost ans should go through the BK process and either emerge lean and mean or cease to be.

Better put than myself, but, the same reasoning.

TY Piney

 

[Gilding the Lily]

However the Obama Administration is dead wrong on this one. I don't give a rat's arse what amount of money the citizens provide GM, it's the shareholders that decide who's boss.

One caveat, Piney. The shareholders elect the board, and the board decides who manages the ship. Part of management's responsibility (with the board's guidance) is financing. If they choose to enter into financing deals that include management-type covenants, then it may do so. And here, the covenant may include the "retirement" of Wagoner. Things like this happen often when companies are in the zone of insolvency, but usually it is a bank that takes over as decision maker (as they are usually the lenders).

With that said, however, it would be completely different if the auto companies were not on board with the government. Think Truman/Steel in the 50's.

 

[novaqt]

Millions around the country are attending Tea Parties. There is one on April 15 in Lafayette Part in DC and one on July 4 in Marshall Part in DC.

 

[southwind]

Millions around the country are attending Tea Parties. There is one on April 15 in Lafayette Part in DC and one on July 4 in Marshall Part in DC.

Make sure and tell the tea party attendees to mention "The Fair Tax", if they really want to make a statement !

http://www.fairtax.org/site/PageServer

 

[nuclearfission]

DETROIT – General Motors Corp. Chairman and CEO Rick Wagoner will step down immediately at the request of the White House, administration officials said Sunday. The news comes as President Obama prepares to unveil additional restructuring efforts designed to save the domestic auto industry.

http://news.yahoo.com/s/ap/gm_wagoner

Part 2 tomorrow:

Obama announces "I'm the new CEO at GM" !

This is an extremely disappointing and dangerous precedent being put forth here. This should disturb anyone who truly believes in our Represetative Republic form of Government. Truly, not a good day.

View attachment 8306

 

[whatkindoffreshhell]

^^^^^^^ you've got to be kidding!

Truly a great day and a step forward for GM. Obama should've ditched the BOD too for tolerating this mess.

I don't care how nice a guy Wagoner may be. He failed miserably while being handsomely paid.

<<<<<<<<<<<<<<<<<<< has sung for Rick Wagnoner!

 

[tech2101]

This is an extremely disappointing and dangerous precedent being put forth here. This should disturb anyone who truly believes in our Represetative Republic form of Government. Truly, not a good day.

Wagoner isn't the first CEO to lose his job as part of a government bailout. The CEOs of mortgage giants Fannie Mae and Freddie Mac were forced out after the government took over the companies in the fall. Robert Willumstad, the former CEO of American International Group Inc., left the company in September.

So, when Fannie, Freddie, and AIG CEO's were asked to leave, did you compare Bush to Lenin?

 

[nuclearfission]

^^^^^^^ you've got to be kidding!

Truly a great day and a step forward for GM. Obama should've ditched the BOD too for tolerating this mess.

I don't care how nice a guy Wagoner may be. He failed miserably while being handsomely paid.

<<<<<<<<<<<<<<<<<<< has sung for Rick Wagnoner!

No, Not kidding. Being a "nice guy", is not the point here as you obviously fail to grasp the true reality of this remarkably dangerous precedent that may be being set here. Presidential powers do not include being able to drop the gavel on a CEO of a PRIVATELY HELD Corporation.

I know what's next....They got public money, read; taxpayer money for bailout, therefore, "we the people", the Prez on our behalf, have the RIGHT to do this. BALONEY.

Keep on with the Kool aid, Pal.

View attachment 8307

 

[nuclearfission]

So, when Fannie, Freddie, and AIG CEO's were asked to leave, did you compare Bush to Lenin?
were asked

Key difference, my friend.

View attachment 8308

 

[whatkindoffreshhell]

No, Not kidding. Being a "nice guy", is not the point here as you obviously fail to grasp the true reality of this remarkably dangerous precedent that may be being set here. Presidential powers do not include being able to drop the gavel on a CEO of a PRIVATELY HELD Corporation.

I know what's next....They got public money, read; taxpayer money for bailout, therefore, "we the people", the Prez on our behalf, have the RIGHT to do this. BALONEY.

Keep on with the Kool aid, Pal.

View attachment 8307

Yes, taxpayer bailouts of privately-held business is dangerous. "Baloney" is business as usual which is just what the automakers have been doing for decades.

We should have let GM find religion in BK court. Absolutely Presidential powers do include the right to drop the gavel on knucklehead businesses and their employees who accept taxpayer bailouts.

But Obama has chosen another course. And I am very very glad Obama has called for Wagoner's head.

(also it has just been announced the GM BOD will have a majority of new members!)

Your koolaid taunt is old and tired.

Thanks for playing!

 

[Gilding the Lily]

Your caveat is duly noted and accurate. If you apply normal loan guidelines that would be in the private sector.

If we as a people are going to bailout GM then we should apply the restrictive covenants that you've pointed out and in exchange for a cash infusion we should take a significant amount of stock, place it in trust managed by a board specifically for the benefit of the taxpayers. Not a government piggybank.

Better yet, we should prime the secured loans, thereby reducing the downside risk involved with financing. Of course, I am sure secured lenders would have a problem with that. I believe the best approach would have been for the US to finance the OEMs through bankruptcy on a higher-priority basis. Allow them to extinguish secured debt, unsecured debt and equity, and rework all contracts, including supplier, management and labor. On the back end, the US would provide exit secured financing in the new and improved OEM that wrapped up the original US financing and provided the ability for the US to obtain warrants to purchase fully-diluted shares in the new and improved OEM at a favorable strike price. Apparently, however, at this junction the US doesn't appear to like proved solutions, but rather, appears to like coming up with uproven methods to century-old problems.