Chrysler Bailout - Bullshit

[Manuel]

Although Cerberus owns 80% of now troubled Chrysler Corporation, it has refused to inject cash into Chrysler, as Sen. Bob Corker pointed out at a hearing about the economic needs of the American automobile industry on December 4, 2008. In response to questioning at a hearing before the House committee on December 5, 2008 by Rep. Ginny Brown-Waite, Chrysler President and CEO Robert Nardelli said that Cerberus' other fiduciary obligations to its other investors and investments prohibited it from injecting capital.

Bloomberg News columnist Jonathan Weil reported yesterday that neither Chrysler nor its majority owner, Cerberus Capital Management LP, will disclose the details of the privately held auto company’s most recent financial statements to Congress. It won’t even hand over the identities of its board members.

Chrysler CEO Robert Nardelli did submit a 14-page business plan (PDF) to the Senate Banking Committee last week, but according to Bloomberg‘s Weil, it’s disappointingly vague:

Not once did Nardelli disclose any of the historical information found on a customary set of financial statements. There was nothing about total assets or liabilities, year-to-date losses or cash flows, let alone pesky details like deferred compensation that might be owed to Chrysler executives.

A Chrysler spokesperson confirmed to Bloomberg that a longer presentation given to the committee, and kept under wraps, did not include the company’s financial statements either.

http://www.propublica.org/article/chryslers-owners-keep-balance-sheets-secret-1210

Cerberus Capital Management, L.P. is one of the world's leading private investment firms. Cerberus specializes in providing both financial resources and operational expertise to help transform undervalued companies into industry leaders for long-term success and value creation.

Cerberus holds controlling or significant minority interests in companies around the world. In aggregate, these companies currently generate over $100 billion in annual revenues.

Cerberus - Company Profile

 

[WillowTree]

Did ya send a memo to BoBo???

 

[rayboyusmc]

Why do the banks get 350 billion for free and we are wetting our pants over the 15 billion for the auto industry?

 

[Manuel]

Why do the banks get 350 billion for free and we are wetting our pants over the 15 billion for the auto industry?

That doesn't make it better. Somehow I get the feeling that $15 billion is seens a small amount these days

 

[rayboyusmc]

That's not my point. The politicians who are up in arms against this were not against the bailout to the money lenders. That 350 billion was given by Paulson in secret. We have no idea who got what or how much, and none of the dik heads in DC are talking about that. Plus they will not have to pay it back. Interesting that banks whose business is to lend money at an interest rate and get paid back, don't have to live by these rules.

The auto industry will have to pay this money back with interest and there will be strings attachde to how they use it.

Why has the fucking banking friends of the rich gotten off scott fucking free?

 

[Jon]

Why do the banks get 350 billion for free and we are wetting our pants over the 15 billion for the auto industry?

Some of us were against that bailout, too.

Let them all fail.

 

[Manuel]

That's not my point. The politicians who are up in arms against this were not against the bailout to the money lenders. That 350 billion was given by Paulson in secret. We have no idea who got what or how much, and none of the dik heads in DC are talking about that. Plus they will not have to pay it back. Interesting that banks whose business is to lend money at an interest rate and get paid back, don't have to live by these rules.?

You are absolutely right about that!

The auto industry will have to pay this money back with interest and there will be strings attachde to how they use it.

Do you really believe that?

 

[BaronVonBigmeat]

Why has the fucking banking friends of the rich gotten off scott fucking free?

Because Wall Street owns Washington, duh. The republicans are aligned with the Rockefeller interests, the democrats are aligned more with the Morgan interests, but either way, Wall Street wins.

Yeah, the oil companies have some clout. Teachers unions, AARP, trial lawyers, farmers, Israelis, the NRA? Yep, they all have a good bit of pull too. The car companies? Ha!

 

[DavidS]

Why do the banks get 350 billion for free and we are wetting our pants over the 15 billion for the auto industry?

Because it won't end at $15 billion and every sensable person knows this. It will end at around $150-$250 billion. You give them something now, it's going to be a lot harder to say no later.

 

[Gunny]

Won't matter this time around. The deal went bust and Congress MUST have its Christmas break at taxpayer expense.

 

[Red Dawn]

I don't think any one particularly likes Taxpayer bailouts.

But, I have to ask Bush voters a question. None of you all raised a single objection, or complained when Iraq wanted hundreds of billions of dollars to build roads, schools, and infrastructure. In fact, your president made sure the money was structured to not be a loan, the iraqis weren't obligated to pay it back.

Yet, when an american industry that employs millions of working class americans is in need of a loan to stay aflooat, a loan that supposedly is going to be paid back, your party in the Senate kills it. I wonder why?