Mind Changed- Let Chrysler Financial Go Under

[Lorax]

Just announced: Chrysler Financial, the lending arm of Chrysler Corporation had refused additional monies from the fed, since this time around restrictions on executive pay are being enforced.

They actually had the nerve to admit this!

Previously when they accepted monies, there were more relaxed standards on executive pay.

This is the same situation many finincial institutions on Wall Street find themselves in- they want our money, but don't want any oversight on how it's spent.

I guess millions in regular compensation isn't enough, and tens of millions are more in order for the bang-up job they've done so far in destroying the nation's financial institutions.

I say let them go under. You can't dip into the public well and not expect some oversight. Enough of this entitlement program for CEO's.

This is corporate welfare at it's worst.

GM as well was spending on lobbyists to the tune of millions SINCE they took funding from the government.

This needs to be tacked onto the back end of any loan repayments- it certainly would be if you or I did such a thing, with penalties and interest.

I have no problem with spending by the fed to rescue companies in trouble- to a limit.

Those limits include increased oversight- which includes lowered levels of executive pay, dividends to shareholders, and concessions from workers.

What is particularly amazing is that in order to apply for these government backed loans, the companies needed to fill out only a TWO page document asking softball questions on how they intend to repay it, when, and what their collateral is.

Gee, when I went for my mortgages over the years, and most recently a refinance two years ago, I was put through the third-degree. Dozens and dozens of pages- call backs for things like phone bills for the last two years, copies upon copies of bank statements, both business and personal. Tax documents for years going back- all but the proverbial blood test.

And I still ended up with a lousy interest rate, which I cannot modify now, since my income has tanked in the last six months, nor would I qualify for a refi for the same reason.

Aren't all of you tired of getting the financial shaft from these losers who make the rules, break them, then ask US to bail them out, but won't lend to us, or modify our existing loans to keep us in our homes, eventhough some of us have been able to pay? This is insidious, and there needs to be more anger out there.

When enough of these businesses go under, then perhaps those that remain standing and continue to need help will accept some oversight for the bailout.

I'll be putting my own two-page request for funding out there and see how far it gets me.

[Prodigal_Son]

In principle, I agree with your argument. At the same time, it's true that it seems unfair to bail out the financial institutions and offer next to nothing to industry -- and that at the price of autonomy.

There is no right and wrong here, in this particular issue. It's simply a matter of consequences: if you think that one [[or two) of the auto companies failing is tenable, then let them fail. You just better hope that it doesn't start a chain reaction.

If we stop producing valuable things in America, we make our economic position even more precarious than it is.

[firstandten]

The holding company that owns Chrysler is going to sell off the assets when the time is right anyway. I say let them go. However I do feel bad for the dealers whom I'm sure floorplan there vehicles thru Chrysler Financial.

I hate that we have to use a double standard when dealing with the financial markets versus the auto industry. It pains me to say this but the financial industry are the "masters of the universe" as they like to call themselves since they have the ability to bring our entire financial system to its knee's

[Lorax]

I'm all for returning to a manufacturing based economy, and would much rather see any government intervention directed toward manufacturing any day over the financial sector.

Chrysler's financial arm is acting like any other Wall Street firm in carping about executive pay when the house is falling down.

Financial firms are much more easily created and destroyed, and need the regulation which wasn't there the last eight years.

This is no reflection on Chrysler as a manufacturer.

Banking and other financial services need to be local, well regulated and responsible.

I say we strengthen unionization, encourage manufacturing to expand and relocate here, and return to a tarrif based economy where our products are just as economical to build and sell here in America.

If we need to do that on the backs of the current crop of financial institutions, so be it.

[kraig]

What's sad is that there are thousands of rank and file employees that will lose their jobs because of the decisions made by a few.

[exdetroiter]

If the automotive industry is allowed to fail, the U.S. would be see a quick trickle down effect because many mom and pop companies/business benefit from the industry. Failure would effect, construction companies, manufactuering organizations, as well as resturants and department stores. This big mess of thing that originated with Bush bailing out the banks has only cause more scuriny on the automobile industries, becasue those same banks are now refusing to finance american vehicles, thus the trickle down effect is happening before our eyes. The big three are making good reliable styles, gas efficient vehicles, but the consumers can't find anyone to finance it.

[kraig]

If the automotive industry is allowed to fail, the U.S. would be see a quick trickle down effect because many mom and pop companies/business benefit from the industry. Failure would effect, construction companies, manufactuering organizations, as well as resturants and department stores. This big mess of thing that originated with Bush bailing out the banks has only cause more scuriny on the automobile industries, becasue those same banks are now refusing to finance american vehicles, thus the trickle down effect is happening before our eyes. The big three are making good reliable styles, gas efficient vehicles, but the consumers can't find anyone to finance it.

Let the church say, Amen.

[Detroitej72]

The fact that Chrysler Financial wanted money with no oversight shows you how America got into this current financial mess.

This is another example of corporate greed, encouraged by the neo-con mentallity, ruining our economy.

[Lorax]

Exdetroiter, you have a super point that is often overlooked in our media.

The financial system has been allowed to get "too large to fail" which is an awful position for us to be in due to the laissez faire politics of years of repugnican rule.

The banks were allowed NOT to lend the first installments of the TARP monies last fall, and sent the system spiraling around the drain.

Now with the threat of additional oversight, they are refusing to accept anymore government assistance, for fear of having the government having a say in how that [[our) money is spent.

The automobile companies had much in their makeup that needed overhauling, with Ford being the one having taken earlier steps to overhaul the way they do business.

Unfortunately for GM & Chrysler the shifting times moved too quickly, and in an unprecedented way, landed them at this crossroads.

For financial firms to get "too big to fail" is the key problem here. No single or group of busineses within any given industry should be allowed this much leverage over our society.

Hopefully with accountability, oversight and regulation, we can break up many of these institutions to make them more manageable. This was done for years under the Sherman Anti-Trust Act, which has not been enforced for a couple of decades now, especially under repugnican rule. We were able to break up MaBell among other giant behemoths, we can do it now.

This socially retarded worship of the CEO and the day trader needs to end. Sane, managed slow growth should always be the order of the day. Any firm trying to capitalize on the consumer without regard as to the eventual outcome should be punished.

Yes, the loss of Chrysler Financial would be a short term hardship for dealerships, but is also an opportunity for more local banking to step in and return to a day when loans of all kinds were held locally, and serviced locally.