Monday, March 30, 2009

Rick Wagoner Is Compelled To Resign from GM

Two developments affecting the US auto industry in this morning's papers:

(1) GM CEO and Chairman Rick Wagoner is being forced to resign by the Obama administration, because of dissatisfaction with (a) his leadership of the company and/or (b) his level of cooperation with the federal government in coming up with a restructuring plan.

(2) The administration has given Chrysler a deadline, 30 days from now, prior to which it must reach a merger deal with Fiat (Fiat will obtain a 35% stake) in order to receive an additional $6 billion in loans.

From 2005 until the end of last year, GM lost $73 billion. Wagoner's critics say that he focused too much on trucks and SUV's rather than fuel-efficient cars.

I'm trying to think through the specific people who are receiving the brunt of public/media criticism for the economic crisis and/or their inadequate responses to it:
  1. Dick Fuld (the head of Lehman)
  2. Alan Greenspan (to some extent)
  3. Barney Frank (among conservatives (for pushing too hard to facilitate Fannie Mae loans to poorer people))
  4. Robert Rubin (among certain editorialists, including Paul Krugman)
  5. Bernie Madoff
  6. Henry Paulson/Timothy Geithner
  7. Maurice Greenberg (founder of AIG)
  8. Jim Cramer and other CNBC personalities (by Jon Stewart)
  9. Rick Wagoner
  10. Ron Gettelfinger (for negotiating overly-generous deals for United Auto Workers members)
164. Prior to the resignation of Wagoner, has the US government ever compelled a corporate chief executive to step down? This seems like something of a watershed moment in the relationship between government and the private sector.

No comments:

Post a Comment