Canuck57 wrote:
"BAR" wrote in message
...
Eisboch wrote:
"HK" wrote in message
m...


Since the taxpayers basically own GM, the chief representative of the
taxpayers should be able to tell GM's CEO that it is over. That
company, and many other corporations, need fresh blood capable of
leading their companies in new directions.


This is going to be interesting in terms of how it is handled.
I am not questioning the request for Wagner to step down, but I am
interested in how his replacement is selected.

To my knowledge (I might be wrong) the bailout money received to date
was not given in exchange for stock in GM. Basically the government
money is subordinated debt, just like a bank loan.
There's no voting rights associated with it.

"Requesting" him to step down is probably a condition for additional
bailout money.
That's perfectly legal. But for the White House (Obama) to install a
new CEO without a vote from the GM Board of Directors (and possibly a
shareholder's meeting and vote, if he is also on the board) might
present some interesting legal issues.

We'll have to see what happens.
What does it mean when management is the government in this situation?
What is a campaign contribution, by a union? Could it be bribery?

Doubtful. With GM debt so huge, and union members themselves will not
invest nor buy a GM (without a coupon) product it does not leave much.

More bailout money putting GM on a lifetime of bailouts and corporate
welfare to bailout rich, or let it do chapter 11 and possibly chapter 7.
The later is a whole lot cheaper but may not seem like it at first. But it
is also failr to do chapter 11 and quit the taxpayer rape.

It seems Ford was the only smart company. They told the US government to
keep their money. The CEO of Wells Fargo should have told Paulson to
have him arrested as he walked out of Paulson's office for refusing to
sign the I want government money agreement.