Chrysler

SEC Must Ban Auto Czar Steven Rattner From Securities Industry

Rattner photoThe Securities and Exchange Commission (SEC) is reportedly considering a ban on former auto czar Steven Rattner from working in the securities industry for up to three years. Even if he gets the three years, it would be pitifully short.

Rattner oversaw the bailouts of Chrysler and GM, which were conducted to the benefit of the United Auto Workers. In the GM bailout, billions of dollars were simply stolen from bondholders and turned over to the union-controlled funds.

Nonunion Delphi Retired Employees Get Shaft in Auto Bailout

Delphi CorporationWhen the Obama administration this past spring forced the bankrupt General Motors and Chrysler Corp. into virtual public receivership, officials justified the action as crucial to the survival of the auto industry and indeed the entire economy. Yet this unprecedented action has had several downsides, one of the less heralded of which has been the sudden vulnerability of current and retired employees who don't belong to a union. Case in point: the roughly 15,000 nonunion retirees of auto parts manufacturer and former GM subsidiary Delphi Corporation on the verge of losing their pension, health insurance and life insurance benefits.

Gingrich Skewers UAW Role in Federal Auto Industry Bailout

Newt GingrichAt least one major American political figure is calling the recent Obama administration-engineered bailouts of General Motors and Chrysler the political payback to the United Auto Workers (UAW) that they really are. In the cover article for the June 15 issue of the conservative weekly Human Events, former House Speaker Newt Gingrich, R-Ga., termed the bailout a "scandal," similar in behavior to the Teapot Dome scandal of the Harding administration but far larger in scope. Gingrich lays out the case for why "saving" the automobile industry, with $50 billion in taxpayer-backed loans ($30 billion of it yet to come) for GM alone, constitutes an unconstitutional tax on bondholders and taxpayers.

Flaherty: Dealer Closings Show Thugery of Obama Administration

NLPC President Peter Flaherty discusses GM and Chrysler dealer closings with Tammy Darvish, Darcars Automotive Group; Kevin Smith, Edmunds.com; and CNBC's Dennis Kneale. Click here to download 3-page pdf transcript.

Sharpton Rakes In Corporate Bucks But Stiffs Hotel

Sharpton photoAccording to today’s Memphis Daily News:

The South’s Grand Hotel is trying to collect a grand sum of money it claims is owed by the Rev. Al Sharpton’s nonprofit civil rights group.

The Peabody hotel has filed a lawsuit in Shelby County Circuit Court against Sharpton’s National Action Network seeking payment of almost $70,300, plus more than $17,000 in attorney’s fees and other costs. The lawsuit, which puts the total close to $88,000, was filed Tuesday…

The Peabody was the site of the 2008 national convention of the National Action Network (NAN). Corporate sponsors included Abbott Laboratories, Allstate, American Honda, Anheuser-Busch (since acquired by InBev), Chase Foundation, Chrysler, Colgate-Palmolive, Continental Airlines, Entergy, FedEx, Ford, GM, Home Depot, Johnson & Johnson, PepsiCo, Pfizer, UPS Foundation and Wal-Mart.

Flaherty: Government Regulation Ruined GM

NLPC President Peter Flaherty debates "what killed GM" with Martin Weiss of Weiss Research, and CNBC host Dennis Kneale on June 3, 2009. Click here to download a 3-page pdf transcript.

GM is Now 'Appendage of Obama's Political Machine'

GM logoBarack Obama argued that if GM collapsed, jobs would be lost and shipped overseas, dealers would close, and the taxpayer would be saddled with all kinds of costs. Well, Obama is “saving” GM and all those things are happening anyway.

This is not a bankruptcy; it’s the moral equivalent of a bank robbery. The White House didn’t “broker” a deal, but it BROKE the things that make our economic system work: rule of law, respect for contracts, and bankruptcy supervised by the judiciary, as specified in the Constitution.

The discussion today misses the point. It’s should not be about the economy but about what this raw exercise of power means for the future of democracy.

Obama Arranges Takeover of GM and Chrysler; Auto Workers Union Gets Huge Stake

Call it by the euphemism "restructuring." But the White House-brokered takeover Gettlefinger photoof General Motors and Chrysler this week has to qualify as one of the most radical moves in the history of American industry. Not only would the Obama administration effectively place these companies under Treasury Department receivership, it would give the United Auto Workers (UAW) a huge financial stake in their operations. Indeed, that would seem to be the point: The administration and organized labor embody the Democratic Party Left. What strengthens one strengthens the other.

Ford Bankrolled Sharpton Convention Featuring Biden

Biden and Sharpton photo

Ford Motor Company has applied for $11 billion in taxpayer funds for retooling, and has access to an additional $9 billion line of credit from the government. Yet, the company was a financial sponsor of Al Sharpton’s national convention last week that featured a speech by Vice-President Joseph Biden.

In a letter today to Steven Rattner, who directs President Obama's auto industry task force, I wrote,

Ford’s financial support for Sharpton places into doubt the judgment of Ford executives. I can think of no expenditure farther removed from the core mission of saving the company and the American auto industry than bankrolling Sharpton. It is your responsibility to ensure that no more capital is wasted on controversial political causes, no matter how supportive they are of the administration you represent.

UAW, Ford Revise Pact on Retiree Health Care Funding

Auto workersEven the United Auto Workers knows that sometimes it's necessary to bite the bullet to come out ahead in the long term. On Monday, February 23, the UAW and the Ford Motor Co. announced they had hammered out the details of a new agreement to preserve retiree health care benefits without jeopardizing the company's existence. The pact would have Ford to pay the union up to half its liabilities in the form of company stock. Given precipitous declines in auto industry stock prices over the last year, it's a sensible way to avoid disaster.

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