Obama's Auto Crackdown Worries Bailed-Out Banks

Legislators strong-arm automaker to keep dealerships, factories open

(NEWSER) - GM might not have realized when it took $58 billion in bailout money that it would now be beholden to members of Congress, who have been acting like 535 new board members as they angle for their constituents' (and their own) interests. Dems and Republicans alike have pressured companies to keep unprofitable factories open, and several have persuaded GM to reverse closure orders on dealerships in their districts. "When GM took federal dollars, they lost some of their autonomy," one GOP congressman tells the Wall Street Journal . More»

From private jets to bodyguards, they just keep taking

(NEWSER) - The CEOs of bailed-out banks and financial companies saw their perks and benefits—ranging from private jet use and country club membership to free parking and bodyguards—rise even at the height of the crisis last year. On average, the CEOs of the 29 biggest companies that received federal money got $380,000 worth of perks in 2008, and for half of them, that was an increase over the year before. Meanwhile, non-financial CEOs had their perks cut by 7%. More»

Figure makes a mockery of government's 'populist image': blogger

(NEWSER) - The new CEO of AIG is bringing home $7 million a year to restore the bailed-out firm to health, Bloomberg reports. Robert Benmosche will receive $3 million in cash and $4 million in common stock, a regulatory filing notes. “The cash component had to be enough to attract a very strong candidate and give that person enough incentive to make a change,” says an expert. More»

(NEWSER) - The rumors of the “cash for clunkers” deal’s demise have been greatly exaggerated, the White House said today, promising that the trade-in program will continue even after consumers have used up its allotted $1 billion. “If you were planning on going to buy a car this weekend using this program, the program continues to run,” said spokesman Robert Gibbs. More»

(NEWSER) - Now he can fly on all the private planes he wants: Former General Motors CEO Rick Wagoner will collect an $8.2 million payout package, plus a $74,000 annual pension, reports the Detroit Free Press. If he chooses, the 56-year-old Wagoner also can cash out a company life insurance policy worth $2.6 million. If this seems like a lot for the ex-chief of a bankrupt company, it may help (a little) to know that his retirement benefits were valued at $22 million only last year. More»