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.

The officials asked not to be identified because details of the
restructuring plan have not yet been made public. On Monday, Obama is to
announce plans to restructure GM and Chrysler LLC in exchange for
additional government loans. The companies have been living on $17.4
billion in government aid and have requested $21.6 billion more.

Wagoner, 56, joined the company in 1977, serving in several capacities
in the U.S., Brazil and Europe. He has been chairman and chief executive
since May 1, 2003.

Obama said Sunday that GM and Chrysler and all those with a stake in
their survival need to take more hard steps to help the struggling
automakers restructure for the future.

- - -

CEO's whose companies lose money year after year, whose companies fail
to come up with innovative products that do not do well in the
marketplace, and who depend upon taxpayer handouts should get the boot.

I want to see the big national banks broken up, and a wall of separation
set up between brokerage houses, banks, and insurance companies. The
conglomerate financial services companies do not benefit the general
public.

"HK" wrote in message
m...

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.

The officials asked not to be identified because details of the
restructuring plan have not yet been made public. On Monday, Obama is to
announce plans to restructure GM and Chrysler LLC in exchange for
additional government loans. The companies have been living on $17.4
billion in government aid and have requested $21.6 billion more.

Wagoner, 56, joined the company in 1977, serving in several capacities in
the U.S., Brazil and Europe. He has been chairman and chief executive
since May 1, 2003.

Obama said Sunday that GM and Chrysler and all those with a stake in their
survival need to take more hard steps to help the struggling automakers
restructure for the future.

- - -

CEO's whose companies lose money year after year, whose companies fail to
come up with innovative products that do not do well in the marketplace,
and who depend upon taxpayer handouts should get the boot.

I want to see the big national banks broken up, and a wall of separation
set up between brokerage houses, banks, and insurance companies. The
conglomerate financial services companies do not benefit the general
public.

Now will see how the government can run a auto company. Guess it can't be
much worse, or can it?

D.Duck wrote:
"HK" wrote in message
m...
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.

The officials asked not to be identified because details of the
restructuring plan have not yet been made public. On Monday, Obama is to
announce plans to restructure GM and Chrysler LLC in exchange for
additional government loans. The companies have been living on $17.4
billion in government aid and have requested $21.6 billion more.

Wagoner, 56, joined the company in 1977, serving in several capacities in
the U.S., Brazil and Europe. He has been chairman and chief executive
since May 1, 2003.

Obama said Sunday that GM and Chrysler and all those with a stake in their
survival need to take more hard steps to help the struggling automakers
restructure for the future.

- - -

CEO's whose companies lose money year after year, whose companies fail to
come up with innovative products that do not do well in the marketplace,
and who depend upon taxpayer handouts should get the boot.

I want to see the big national banks broken up, and a wall of separation
set up between brokerage houses, banks, and insurance companies. The
conglomerate financial services companies do not benefit the general
public.

Now will see how the government can run a auto company. Guess it can't be
much worse, or can it?



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.

I doubt the government will be "running" GM.

"HK" wrote in message
m...

D.Duck wrote:

Now will see how the government can run a auto company. Guess it can't
be much worse, or can it?

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.

I doubt the government will be "running" GM.


You missed the point of the announcement.
The government now is.

Eisboch

"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.

Eisboch

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.

Eisboch

"Eisboch" wrote in message
...


"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.

Eisboch

GM is for all intensive purposes bankrupt. It would not be hard for a
government type to point that out to the most inept of board members their
liability in continuing the fraud and BS. And bond holders could be moving
too next week as 30 cents on the dollar is an insult, which broke down last
week for some bond holders. This is really coming down to chapter 11. It
is the only sane avenue left.

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.

Eisboch


I haven't seen anything on the government naming a replacement CEO. If
it were up to me, I'd want a new board, too, since the present one
obviously is not competent.

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.

Eisboch


We have to get away from the idea that these damned boards of directors
are competent. Absent evidence, I think they are not. And we have to
chop up huge companies whose failures can kill our economy. Hugeness is
not serving the public's interest.

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?