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.

On Sun, 29 Mar 2009 21:34:34 -0400, Eisboch wrote:


Incompetent Board or not, if this isn't handled correctly, the
threatened lawsuits against the government they were worried about with
the AIG bonus guys will pale in comparison to the lawsuits brought by GM
stockholders. *They* own the company, not the government or the
taxpayers.

Chapter 11 is the vehicle (pun intended) to cleanly restructure the
company.

Wagoner should have been gone years ago, and bankruptcy is still on the
table. Obama is trying to light a fire under GM's management, and it's
about time. GM has been operating ten years behind the market. Now they
have 60 days to catch up, or it's bankruptcy.

Chrysler has even less time, 30 days. The Obama administration has
rightly figured they can not standalone. If they can't make a deal with
Fiat, they're gone.

thunder wrote:
On Sun, 29 Mar 2009 21:34:34 -0400, Eisboch wrote:


Incompetent Board or not, if this isn't handled correctly, the
threatened lawsuits against the government they were worried about with
the AIG bonus guys will pale in comparison to the lawsuits brought by GM
stockholders. *They* own the company, not the government or the
taxpayers.

Chapter 11 is the vehicle (pun intended) to cleanly restructure the
company.

Wagoner should have been gone years ago, and bankruptcy is still on the
table. Obama is trying to light a fire under GM's management, and it's
about time. GM has been operating ten years behind the market. Now they
have 60 days to catch up, or it's bankruptcy.

Chrysler has even less time, 30 days. The Obama administration has
rightly figured they can not standalone. If they can't make a deal with
Fiat, they're gone.

They both should have gone into chapter 11 last December.

"BAR" wrote in message
...
thunder wrote:
On Sun, 29 Mar 2009 21:34:34 -0400, Eisboch wrote:


Incompetent Board or not, if this isn't handled correctly, the
threatened lawsuits against the government they were worried about with
the AIG bonus guys will pale in comparison to the lawsuits brought by GM
stockholders. *They* own the company, not the government or the
taxpayers.

Chapter 11 is the vehicle (pun intended) to cleanly restructure the
company.

Wagoner should have been gone years ago, and bankruptcy is still on the
table. Obama is trying to light a fire under GM's management, and it's
about time. GM has been operating ten years behind the market. Now they
have 60 days to catch up, or it's bankruptcy.

Chrysler has even less time, 30 days. The Obama administration has
rightly figured they can not standalone. If they can't make a deal with
Fiat, they're gone.

They both should have gone into chapter 11 last December.

Or earlier. But Wagoner got 4 more months of pay, about $4M.