Barack Obama has begun rolling heads as he demanded the Chairman of General Motors resign in return for additional government loans. Rick Wagoner submitted his resignation today following a Friday meeting with the President. Now we need heads roll on Wall Street. GM, Ford and Chrysler would be much healthier if Americans had jobs, homes, retirements and the confidence to buy new cars. Credit for loans continues being tight. These factors all added to the car makers own failures to produce a catastrophic situation.
It doesn’t appear GM was serious enough in its restructuring to satisfy the White House. Obama demanded Wagoner’s resignation in return for more money. This required the GM Chairman to put his company and employees ahead of himself. Credit to him for doing the right thing.
Where are the heads of AIG, Goldman Sachs, Morgan Stanley, GE and other companies responsible for the meltdown? The heads and top executives of Moody’s and Standard and Poors should be in prison. These ratings companies provided the fraudulent AAA ratings for toxic securities which enables them to be sold. This was criminal. I’m still wondering where all the litigation is. Wall Street conspired to defraud pension funds, banks, corporations and investors based on such fraudulent ratings they pushed through. Considering the trillions being lost why aren’t these victims suing for damages? Our system should be self policing to the extent where the legal outcomes bankrupt these companies, executives are prosecuted and some victims reclaim losses. It appears the legal system is as broken as Wall Street if there is no legal responsibility for mismanagement and fraud.