U.S. automakers held to double-standard
George E Curry/NNPA Columnist
Issue date: 12/21/08 Section: Politics
Nothing has been more interesting to watch in recent months than the contrast between the way Congress has treated the Big Three U.S. auto manufacturers seeking a bridge loan to keep their troubled industry afloat and the overly generous handouts used to reward Wall Street greed.
Considering the different constituents, one would have thought the most hostility would have been directed at the fat cats on Wall Street, many of whom profited by betting that some mortgage-backed investments would go belly up. But that hasn't been the case.
When CEOs of General Motors, Ford and Chrysler flew to Washington on corporate jets to make a plea for help, windbags in Congress stepped over one another trying to express the most outrage. Never mind that some of those legislators have themselves flown on corporate jets, never mind that they have traveled free on military jets, never mind that they enjoy health benefits and other perks far beyond the reach of most Americans. It was the equivalent of Jesse James complaining about the crimes of Frank James.
Whether you believe that the U.S. auto industry should receive a loan or feel they should be forced into bankruptcy in order to reorganize, it should be noted that car manufacturers and Wall Street were seeking two markedly different forms of federal assistance. The Big Three were asking for a loan while Wall Street was seeking - and got - a handout.
The Bush administration, after being given a $700 billion pot to pretty much spend as it wants, has evidently adopted the motto: No Bank Left Behind. Take the case of Citigroup, Inc. It recently received a $20 billion infusion of cash from the feds and a guarantee of $306 billion against its high-risk assets. That's on top of a previous $25 billion the federal government had doled out to Citigroup. In exchange, the federal government will receive preferred stock shares with an 8 percent dividend.
We're in the middle of providing nearly $1 trillion to Wall Street yet no one has talked about Wall Street executives' using corporate jets or removing the inept leaders that plunged the industry into this morass.
Considering the different constituents, one would have thought the most hostility would have been directed at the fat cats on Wall Street, many of whom profited by betting that some mortgage-backed investments would go belly up. But that hasn't been the case.
When CEOs of General Motors, Ford and Chrysler flew to Washington on corporate jets to make a plea for help, windbags in Congress stepped over one another trying to express the most outrage. Never mind that some of those legislators have themselves flown on corporate jets, never mind that they have traveled free on military jets, never mind that they enjoy health benefits and other perks far beyond the reach of most Americans. It was the equivalent of Jesse James complaining about the crimes of Frank James.
Whether you believe that the U.S. auto industry should receive a loan or feel they should be forced into bankruptcy in order to reorganize, it should be noted that car manufacturers and Wall Street were seeking two markedly different forms of federal assistance. The Big Three were asking for a loan while Wall Street was seeking - and got - a handout.
The Bush administration, after being given a $700 billion pot to pretty much spend as it wants, has evidently adopted the motto: No Bank Left Behind. Take the case of Citigroup, Inc. It recently received a $20 billion infusion of cash from the feds and a guarantee of $306 billion against its high-risk assets. That's on top of a previous $25 billion the federal government had doled out to Citigroup. In exchange, the federal government will receive preferred stock shares with an 8 percent dividend.
We're in the middle of providing nearly $1 trillion to Wall Street yet no one has talked about Wall Street executives' using corporate jets or removing the inept leaders that plunged the industry into this morass.
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