Jun 04 2009
Dealergate Cracks Open Government Takeovers For Congressional Scrutiny
Well, President Obama really stepped into it this time. When the Feds determined that local Chrysler and GM dealers had to be shuttered to save costs (the formula behind this claim is still a mystery to me since dealers are independently run franchises), and they apparently picked some to survive and others to die based on partisan allegiances, they drew the attention of Congress – in a fit of bipartisan concern and angst:
“I honestly don’t believe that companies should be allowed to take taxpayer funds for a bailout and then leave it to local dealers and their customers to fend for themselves with no real plan, with no real notice, with no real help,” said the committee’s chairman, John D. Rockefeller IV (D-W.Va.).
…
Mr. Obama has said he doesn’t want the government running GM and Chrysler while the U.S. Treasury holds significant ownership in each. But lawmakers from both parties have expressed frustration over their limited role in the administration’s plans.
“I never would have believed as a candidate for the U.S. Senate that the U.S. government could buy GM without a hearing, with no vote, yes or no,” Sen. Mike Johanns (R., Neb.) said at Wednesday’s hearing. “There are billions and billions of dollars at stake here.”
Mr. Johanns said he soon would introduce legislation requiring the administration to obtain congressional approval any time it used funds from the Troubled Asset Relief Program to take equity stakes in a company.
It’s about damn time. There should be NO US stakes in a company without hearings and debate. I for one prefer the Chrysler model where the unions and employees become part owners. This is the dreaded Walmart model! In the white color engineering business area I work this is becoming the preferred model as well. SAIC, the engineering consultant giant out of San Diego, was built on this model.
When employees get more than a salary, when they get equity which grows with the company’s success, you would be surprised at the energy levels put out at all levels. It is a truly amazing phenomena I have seen work magic many times.
The GM model is a recipe for disaster. State run businesses are an oxymoron and all have failed inside the US. I am glad to see the Congress starting to flex its muscle and be the debate floor for national decisions once again, taking it out of the back rooms of the White House were only the cronies can enter.
Yep. It’s long past ‘about time’. Where do you think all these Overseerers have been?
“Mr. Johanns said he soon would introduce legislation requiring the administration to obtain congressional approval any time it used funds from the Troubled Asset Relief Program to take equity stakes in a company.”
What an idiotic statement!
THE TARP MONEY HAS BEEN SPENT!
THIS LAW IF PASSED NOW WILL MEAN NOTHING!
And Johanns knows this very well – that’s why he said it will only restrict TARP funds, not all funds. All the TARP funds are committed, but this law will leave the door wide open for this to go on happening with other funds. This is a transparent travesty of a farce, a pure sham.
This moron sat and waited and did nothing until all the money was spent and all the equity stakes were taken and it’s too late to do anything about it, and NOW he wants to pass the law that should have been passed 9 months ago???
Yes, GM joins Fannie Mae and Freddie Mac as a GSE.
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