What right does Obama have to fire the CEO of GM?

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• Old School, I of course have never read the fine print in the agreement between GM and the gov. but it was a loan was it not? This was not bailout money like the free trillion (give or take a billion) that Wall Street got to wallow in.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• @PitB - Loan or giveaway, it does not matter. The government has the right to demand terms if it's going to shell out money.
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  When you get a home mortgage, the bank insists that you have a clean title to the house and that you provide fire insurance.
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  Venture capital firms routinely insist that company founders turn management over to experienced professionals as a condition of funding.
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  When Enron Corp. started to have financial difficulties, banks insisted that CFO Andy Fastow be fired as a condition of loaning Enron more money.
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  Whether forcing Rick Wagoner out of GM was a wise move, I cannot say (I think probably "Yes", but that's a personal opinion). But there is no doubt that the US government has the right to put such conditions on the bailout money.

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  by Old School on April 1st, 2009

• Like I said, I don't know the fine print (terms) and if everybody involved agreed to them than yes I can see your point. Sucks for Rick. :) he did get a giant golden parachute so I'm not exactly crying big crocodile tears for him. hehe

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

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• Very good answer and to some extent my point. The government is getting way to powerful even in the private sector of this country. And the main stream is letting them by giving up more and more freedoms for security. :(

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• I doubt if anyone with as much money as the former CEO of GM is really all that worried.The odds are that he is likely to have far more money than anyone on Answerbag and no financial worries for the rest of his life.Most people are not that lucky.

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  by Dr Jones on July 22nd, 2009

• The BAD point here, that no one has said is... On Star is now in the hands of the Fed, and they can now shut down any GM car, AT WILL!

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  by KiwiBruce on July 22nd, 2009

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• I can only assume that it has something to do with the agreement GM has with the gov.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• Assume? That's not a good word.

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  by Adz3r0 on April 2nd, 2009

• Yep, but there are a lot of worse words (I suppose) :)

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  by Phil in the Blank...backandtotheleft on April 2nd, 2009

• To assume infers that you're not certain. I'm likely to question the validity of your inquiry.

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  by Adz3r0 on April 2nd, 2009

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• In a matter of speaking,,yes.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• Yikes. I wonder what the story with that is?

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  by travel breeze on April 1st, 2009

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• That's my point (partly) I believe the government has no right to interfere with this. Let GM crash and burn [pun intended] if they can't run their own business let them die. Same with Wall Street, should not have given them free money either! Let Wall Street fall. Screw 'em maybe enough people get pissed off loosing their 401K's that they implement better control of banks etc.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• Conservatives have nothing to do with it.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• ummm do you know what will happen to our economy without GM and Ford? Do you know how many companies depend on those two? Do you know how many employees they have? And your comfortable just letting that all go down the shitter? Not to mention the banks...

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  by budaman on April 1st, 2009

• It's not that I would be comfortable about it. It's about principles and ethics. Why should my tax dollars go to greedy rich scumbags that only care about filling their pockets and screwing everyone else? Tough love I call it, let these jerks sink and get a new improved system.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• I see your point but you would be only hurting yourself. What will our cops drive? What will Goodyear tire, Firestone etc, do??? What about the companies that make the cloth, leather, and other parts for these auto companies? What about the millions of workers they employee between the three (GM, Ford, Chrysler)? Should we say, "Oh well, tough love"? It's not just the auto companies themselves, its all the other companies and the people who depend on the auto companies.
  P.S. All of our country's money would then be sent to China for Hondas and such, since we wont have an auto industry of our own. Are you willing to give that much American money to China? Cause that's the only alternative...

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  by budaman on April 1st, 2009

• I appreciate and understand your position, but you need to look at the long term solution. We can't keep doing what we're doing. There are other auto companies that have plants right here in America. The big three will have to start retooling for more efficient cars and all the other supplying companies will need to do the same.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• We need to become less and less dependent on Earth killing fossil fuels and the way Americans think about personal travel. Americans love their big gas guzzling luxury rides.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• I totally agree about becoming less dependent on fossil fuels, as it would help our economy greatly to not be dependent on foreign oil. Obama's stimulus plan is giving a lot of funding for electric and hybrid cars. As well as he has required the big three to produce more fuel efficient cars.
  The only other solution is to bring in foreign cars, and China is alreadly going to be bank rolling our 3 trillion dollar debt over the next decade. That alone will make the the most powerful country in the world.
  I think the government needs to force the big three to make the majority of their vehicles hybrid and electric. China has already announced that they will get 500,000 hybrid and electric car and buses on the road by 2011. We need to follow their lead.

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  by budaman on April 2nd, 2009

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• A little off topic and kind of all over the place.

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  by Phil in the Blank...backandtotheleft on April 1st, 2009

• Not off topic really. OK I paid 18 years medicare its a tax from salary my salary. These folks using up that money and now they are trying to revamp the way it is used. Here we are paying out of Federal Tax's and everyone is crying about firing which he did not do. They raise a big stink about corporate payoffs recently but automaker CEO's dont have to spend your money wisely? That makes no sense in any perspective.

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  by militaryman09 on April 1st, 2009

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