GM on the critical list

[Art Anderson]

While not directly involving the Detroit Big Three, it does appear that the Federal Government is setting the tune by which any financial aid to GM, Ford and Chrysler might work: The Government and Federal Reserve rescue of Citigroup involves, in addition to billions in cash (to shore up the bank's reserves) and billions more in guarrantees. But, the unique thing, or so it seems to me, is that in exchange, the government will directly be overseeing the operations of the bank, regulating the loan risks Citi will be allowed to take on, and have pretty much the final say over executive compensation and bonuses, how much, and when and why.

Could we see government overseers in the executive suites in Detroit?

Art

[Harry P.]

While not directly involving the Detroit Big Three, it does appear that the Federal Government is setting the tune by which any financial aid to GM, Ford and Chrysler might work: The Government and Federal Reserve rescue of Citigroup involves, in addition to billions in cash (to shore up the bank's reserves) and billions more in guarrantees. But, the unique thing, or so it seems to me, is that in exchange, the government will directly be overseeing the operations of the bank, regulating the loan risks Citi will be allowed to take on, and have pretty much the final say over executive compensation and bonuses, how much, and when and why.

Could we see government overseers in the executive suites in Detroit?

Art

If Detroit is going to be running via taxpayer money... we better see government oversight!