OS is, well, weary. The week is being spent on restoring the house post-flood, post-contractor, pre-academic year.
Yesterday was spent helping rescue an 80+ year old friend from the clutches of an auto dealer in Brentwood, Tennessee, who attempted to convince her that her lovely Caddy need $3500 of work, and that she needed to just get rid of it (e.g. trade it to us for about 2K or so), and buy another car (from us). OS drove it to his mechanic, who serviced it, replaced one tie rod end, replaced a piece of molding ($10 in supplies consumed), went over it with a fine-toothed comb, and charged her $233 for his efforts. The car has 70k miles on it, and drives showroom new.
When the propaganda about the 'New GM' begins to ratchet up, and the dealers pipe in about their 'new approaches to customer care', remember this little old lady. OS suggests we all run the other direction.
Another friend has lost a family member to a tragic drowning. A student is in the process of being tossed from her family, because she wishes to go to college, which is anathema in her world. Another friend was just summarily fired after eleven years, because the boss doesn't like him, and the organization he helped hold together (the church OS holds his membership in) is about to go through a period of chaos. OS lacks the energy to get involved, but he is anyway...
So, with nothing to say of value, OS offers a moment of dry, lovely humor. His readers in the US have seen this, but the readers from overseas likely haven't. Kudos to the creators of this little gem.
Showing posts with label GM. Show all posts
Showing posts with label GM. Show all posts
Thursday, August 26, 2010
Sunday, April 18, 2010
The Steven Rattner Scandal And The Obama White House
It appears the man the Obama White House put in charge of the takeover of Chrysler and GM was already up to his hips in seriously unethical dealings with public pension funds.
It's a convoluted story, but at heart it was a 'pay-to-play' scheme, in which it is alleged Rattner obtained a $100 million dollar public pension fund investment for his firm by unethical means. He made a series of unrelated deals on behalf of people who made the decision to steer the investment in his direction. Wanna bet he landed a handsome bonus at year's end for his efforts?
He then went on to be put in charge of the 'rescue' of two dead auto firms, which by the way, are still....not viable. But tens of billions of dollars changed hands in the process, and deal after deal after deal were made along the way. That's what the man does, you know, make deals. It's his way of life, how he makes his living.
The obvious question has to be raised: What sorts of deals were made, and what small slices of those tens of billions ended up flowing in his direction? It all happened very quickly, all very confused, lots of smoke and mirrors, and massive skirting of bankruptcy law occurred, if memory serves.
Another obvious question: Before assigning him to the task, didn't the Obama White House vet this guy? Or did the fact that he was a major Democrat fund-raiser help them decide? Did these things matter, or did they hire him because of who he was, knowing the manner of the man?
In the meantime, back to this week's account:
"Mr. Rattner does not agree with the characterization of events released today, including those contained in Quadrangle's statement," said Jamie S. Gorelick, an attorney for Rattner. "He looks forward to the full resolution of this matter."
Standard lawyer boilerplate. But the name of the lawyer rings a bell! Why, OS scratches his gray head in wonder? Where has he encountered the name of Jamie S. Gorelick?
Here's one place. From the Washington Post, April 6, 2005:
Fannie Mae employees falsified signatures on accounting transactions that helped the company meet earnings targets for 1998, a "manipulation" that triggered multimillion-dollar bonuses for top executives, a federal regulator said yesterday.
Armando Falcon Jr., director of the Office of Federal Housing Enterprise Oversight, said the entries were related to the movement of $200 million in expenses from 1998 to later periods. The result of the changes was an increase in Fannie Mae's 1998 earnings per share and the release of a $27.1 million bonus pool for senior executives.
Fannie Mae reported paying the following executive bonuses in 1998: chairman and chief executive James A. Johnson received $1.932 million; Franklin D. Raines, chairman-designate, received $1.11 million; Chief Operating Officer Lawrence M. Small received $1.108 million; Vice Chairman Jamie S. Gorelick received $779,625; Chief Financial Officer J. Timothy Howard received $493,750; and Robert J. Levin, an executive vice president, received $493,750.
That's one reference...there are more, not difficult to find.
OS does not believe in conspiracy theories. No one was passing envelopes of cash to the President, or wiring vast sums to his offshore accounts. But the best thing one can say about having Rattner on board is that the White House staff were reckless and gullible.
This is not another Watergate. But it is indicative of attitudes. And as businesses and families struggle through The Great Recession, stories like this are demoralizing.
It's a convoluted story, but at heart it was a 'pay-to-play' scheme, in which it is alleged Rattner obtained a $100 million dollar public pension fund investment for his firm by unethical means. He made a series of unrelated deals on behalf of people who made the decision to steer the investment in his direction. Wanna bet he landed a handsome bonus at year's end for his efforts?
He then went on to be put in charge of the 'rescue' of two dead auto firms, which by the way, are still....not viable. But tens of billions of dollars changed hands in the process, and deal after deal after deal were made along the way. That's what the man does, you know, make deals. It's his way of life, how he makes his living.
The obvious question has to be raised: What sorts of deals were made, and what small slices of those tens of billions ended up flowing in his direction? It all happened very quickly, all very confused, lots of smoke and mirrors, and massive skirting of bankruptcy law occurred, if memory serves.
Another obvious question: Before assigning him to the task, didn't the Obama White House vet this guy? Or did the fact that he was a major Democrat fund-raiser help them decide? Did these things matter, or did they hire him because of who he was, knowing the manner of the man?
In the meantime, back to this week's account:
"Mr. Rattner does not agree with the characterization of events released today, including those contained in Quadrangle's statement," said Jamie S. Gorelick, an attorney for Rattner. "He looks forward to the full resolution of this matter."
Standard lawyer boilerplate. But the name of the lawyer rings a bell! Why, OS scratches his gray head in wonder? Where has he encountered the name of Jamie S. Gorelick?
Here's one place. From the Washington Post, April 6, 2005:
Fannie Mae reported paying the following executive bonuses in 1998: chairman and chief executive James A. Johnson received $1.932 million; Franklin D. Raines, chairman-designate, received $1.11 million; Chief Operating Officer Lawrence M. Small received $1.108 million; Vice Chairman Jamie S. Gorelick received $779,625; Chief Financial Officer J. Timothy Howard received $493,750; and Robert J. Levin, an executive vice president, received $493,750.
OS does not believe in conspiracy theories. No one was passing envelopes of cash to the President, or wiring vast sums to his offshore accounts. But the best thing one can say about having Rattner on board is that the White House staff were reckless and gullible.
This is not another Watergate. But it is indicative of attitudes. And as businesses and families struggle through The Great Recession, stories like this are demoralizing.
Thursday, April 23, 2009
Gomer Pyle, Second Stanza
Sargeant Carter!! Sargeant Carter!! You'll never guess what just happened!!
GM will default, and finally do what should have been done long ago--head to bankruptcy court.
Now, how much money did the politicians hand these clowns in the effort to avoid the obvious?
Remember December, when Senator Corker tried to negotiate a deal that looked like bankruptcy, with the taxpayer playing a 'debtor-in-posession' role?
Remember how the head of the UAW, Gettlefinger, arrogantly rejected the deal, vilifying Corker in the process? Remember how he demanded to see the books of Toyota before he would consider a deal for GM?
When the press begins the crocodile tears, remember how GM got here. Remember the decades of shabby cars, rip-off financing, dealerships that made their fortunes with inflated prices on cars, parts, service, bogus fees, and general rank dishonesty.
They weren't too big to fail. They were too stupid and greedy to succeed.
GM will default, and finally do what should have been done long ago--head to bankruptcy court.
Now, how much money did the politicians hand these clowns in the effort to avoid the obvious?
Remember December, when Senator Corker tried to negotiate a deal that looked like bankruptcy, with the taxpayer playing a 'debtor-in-posession' role?
Remember how the head of the UAW, Gettlefinger, arrogantly rejected the deal, vilifying Corker in the process? Remember how he demanded to see the books of Toyota before he would consider a deal for GM?
When the press begins the crocodile tears, remember how GM got here. Remember the decades of shabby cars, rip-off financing, dealerships that made their fortunes with inflated prices on cars, parts, service, bogus fees, and general rank dishonesty.
They weren't too big to fail. They were too stupid and greedy to succeed.
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