Restitutor Orbis

Politico is reporting that Obama has demanded that the chairman and CEO of GM, Rick Wagoner, resign. And according to Politico, he has.

Why?

Because GM wants more government money. Accusations of socialism aside, fears of government encroachment into industry aside, this should have happened at the outset of the stimulus crisis, while Bush was still in office. The fact that these people ran their businesses into the ground, the fact that it is OUR tax dollars that are being tossed at them, led me to the early conclusion that the management of any corporation that accepted our money should have to go. CEO, Board, all of them. Go. Replace them with competent people.

Everything that has followed that initial bailout has convinced me I was right. Unbridled greed, corruption and a refusal to change an entrenched philosophy that panders to further enriching the already grotesquely overpaid executives, have demonstrated that these people have not made and will not make the necessary changes for their companies to survive. They cannot continue to suck up our tax dollars and bankrupt our nation in the process while continuing with the same failed policies. Somebody had to do this. Since they wouldn't do it themselves, the government has.

It's unfortunate that it had to be, but that's the way it goes, sometimes. Nobody wanted it. Doesn't mean we don't have to do it. Today,

President Barack Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.

The White House confirmed Wagoner was leaving at the government's behest after The Associated Press reported his immediate departure, without giving a reason.

Here is a history of the auto industries failings:

• GM and Chrysler first requested billions in federal aid in November, warning that they could run out of cash in a matter of months if they didn't receive it.


• In December, President Bush agreed to loan $9.4 billion to GM and $4 billion to Chrysler.


• Last month, GM asked for $16.6 billion more and Chrysler requested an additional $5 billion.


• Earlier this month, Obama agreed to loan $5 billion to American auto parts manufacturers to help them weather the steep drop in new vehicle orders and the financial uncertainty at the Big Three.

Why Waggoner? Politico offers two reasons:

1. First, his company is asking for the most in total federal aid: $26 billion, a figure administration officials fear could grow even larger.


2. Second, the GM chief was tied more directly to the ill-fated decisions that that brought much of the American auto industry to the brink of collapse.

According to the New York Times the government "has also instructed Chrysler to form a partnership with the Italian automaker Fiat within 30 days as conditions for receiving another much-needed round of government aid...If a deal is reached between Chrysler and Fiat, the administration says it would consider another loan of $6 billion to Chrysler."