WASHINGTON, Dec 7 (Reuters) - U.S. Senate Banking Committee chairman Christopher Dodd said on Sunday General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) chief executive Rick Wagoner should resign to allow new leadership to restructure the faltering company. "I think he has to move on," Dodd, a Connecticut Democrat who is leading efforts to craft legislation to bailout U.S. automakers, said on CBS's "Face the Nation." U.S. lawmakers are close to a deal to provide $15 billion in emergency loans to help General Motors and Chrysler LLC avoid bankruptcy. Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz), thought to be in best shape of any of the Big Three U.S. auto makers, is also seeking a line of credit from the U.S. government. Dodd said the legislation would buy the U.S. auto industry time to work through structural and financial problems. He said industry restructuring should be done under new leadership. Asked about Wagoner, Dodd said he should step aside.
WASHINGTON, Dec 7 (Reuters) - U.S. Senate Banking Committee chairman Christopher Dodd said on Sunday General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) chief executive Rick Wagoner should resign to allow new leadership to restructure the faltering company.
"I think he has to move on," Dodd, a Connecticut Democrat who is leading efforts to craft legislation to bailout U.S. automakers, said on CBS's "Face the Nation."
U.S. lawmakers are close to a deal to provide $15 billion in emergency loans to help General Motors and Chrysler LLC avoid bankruptcy. Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz), thought to be in best shape of any of the Big Three U.S. auto makers, is also seeking a line of credit from the U.S. government.
Dodd said the legislation would buy the U.S. auto industry time to work through structural and financial problems. He said industry restructuring should be done under new leadership. Asked about Wagoner, Dodd said he should step aside.
Dan Quayle and Cerberus Holding American Economy Hostage But far more important, making a Chrysler bailout contingent on GM's acquisition basically bails a bunch of muckety-muck Republicans and pseudo-Republicans out of their stupid business decisions. As this article makes clear, Cerberus is a private investment firm loaded to the gills with Washington retreads: (...) Cerberus' MO is to buy companies cheaply, chop them up, re-package them, and sell them for a profit. Which is precisely what they intended to do when they acquired Chrysler last year for $7.4 billion (and more than half of GMAC in 2006). But, after a year-long hunt for someone to buy Chrysler and a further $2 billion investment, Cerberus is stuck with a company in a troubled sector hemorrhaging money. So they have been lobbying to have someone bail them out of their crappy investment. Which is where the Republicans in Congress comes in. We know that Bob Bennett (who has received $17,000 of Cerberus love of late) is getting lobbied to get Cerberus bailed out of its bad investment; and, surprise surprise, Bennett proposed exactly that at Thursday's hearing. We also know that someone--probably Snow or Quayle or someone like that--not only chatted up Bob Corker the other day, but induced him to publicly announce that Cerberus isn't going to help bail its own company, Chrysler, out (this was right before Corker slammed GM's stock by falsely stating its DOE application had been rejected). And though Richard Shelby doesn't want any kind of bailout, it's worth noting the $37,500 invested in him of late, as well as similarly large chunks to John Kyl and Orrin Hatch. (Cerberus also gives big to MI's legislators, both Democratic and Republican.) In other words, some of these Republicans who are so adamant that the Big Two and a Half shouldn't be bailed out also happen to be the same guys pushing to bail out their buddies at Cerberus.
But far more important, making a Chrysler bailout contingent on GM's acquisition basically bails a bunch of muckety-muck Republicans and pseudo-Republicans out of their stupid business decisions.
As this article makes clear, Cerberus is a private investment firm loaded to the gills with Washington retreads:
(...)
Cerberus' MO is to buy companies cheaply, chop them up, re-package them, and sell them for a profit. Which is precisely what they intended to do when they acquired Chrysler last year for $7.4 billion (and more than half of GMAC in 2006). But, after a year-long hunt for someone to buy Chrysler and a further $2 billion investment, Cerberus is stuck with a company in a troubled sector hemorrhaging money. So they have been lobbying to have someone bail them out of their crappy investment.
Which is where the Republicans in Congress comes in. We know that Bob Bennett (who has received $17,000 of Cerberus love of late) is getting lobbied to get Cerberus bailed out of its bad investment; and, surprise surprise, Bennett proposed exactly that at Thursday's hearing. We also know that someone--probably Snow or Quayle or someone like that--not only chatted up Bob Corker the other day, but induced him to publicly announce that Cerberus isn't going to help bail its own company, Chrysler, out (this was right before Corker slammed GM's stock by falsely stating its DOE application had been rejected). And though Richard Shelby doesn't want any kind of bailout, it's worth noting the $37,500 invested in him of late, as well as similarly large chunks to John Kyl and Orrin Hatch. (Cerberus also gives big to MI's legislators, both Democratic and Republican.)
In other words, some of these Republicans who are so adamant that the Big Two and a Half shouldn't be bailed out also happen to be the same guys pushing to bail out their buddies at Cerberus.
