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Immelting!

Thread: 

Obama tacks toward "the middle".

I'd say His Oliness isn't happy with GE's 2010 Senate contributions, and wants more quid for that quo in 2012:

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Otherwise, ho hum. The administration never listened to Volcker anyway, so why not get rid of him?

Oh, and NBC News.

Oh, and Immelt's GE got $140 billion in bailout money from you and me. Seeking Alpha:

Tell me again what a triple-A rating is good for? Not a whole lot, if one of the iconic triple-As in American industry, General Electric, has to go hat in hand to the federal government for a $140 billion bailout.

Or maybe G.E. isn't the bulletproof financial juggernaut the rating agencies say. The company's vaunted GE Capital unit has supposedly been a money machine for years, having generated solid returns come rain or shine. By now, the unit generates upwards of 40% of G.E. overall profits.

Except there's one problem: G.E.'s financial services business may be the blackest box on Wall Street. The unit has little transparency, no regulatory oversight, and now, we are finding out, an unstable funding model.

In particular, G.E. has chosen to fund its finance business with short-term commercial paper rather than secure more stable long-term funding based on its triple-A rating--which, it appears, turns out to be fiction.

So, when our Beloved Leader puts Immelt in charge of a "competive" council, you really have to ask yourself "competitive at what?" Why, rent-extraction, of course! Even Pravda noticed, so you know what's unsaid is even worse:

The company did not initially qualify for the program, under which the government sought to unfreeze credit markets by guaranteeing debt sold by banking firms. But regulators soon loosened the eligibility requirements, in part because of behind-the-scenes appeals [bribes] from GE.

As a result, GE has joined major banks collectively saving billions of dollars by raising money for their operations at lower interest rates. Public records show that GE Capital, the company's massive financing arm, has issued nearly a quarter of the $340 billion in debt backed by the program, which is known as the Temporary Liquidity Guarantee Program, or TLGP. The government's actions have been "powerful and helpful" to the company, GE chief executive Jeffrey Immelt acknowledged in December.

GE's finance arm is not classified as a bank. Rather, it worked its way [that's rich] into the rescue program by owning two relatively small Utah banking institutions, illustrating how the loopholes in the U.S. regulatory system are manifest in the government's historic intervention in the financial crisis.

I like "worked its way," the phrasing. Rather like a tick works its way under your skin.

UPDATE Oh, and Ronald Reagan, Obama's hero:

GE will be the lead sponsor of celebrations marking Reagan’s 100th birthday, donating $10 million for the two-year schedule of events. Reagan said in his memoirs that he honed political and leadership skills as television host of General Electric Theater from 1954 to 1962.

Obama's a real piece of work, isn't he?

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votermom's picture
Submitted by votermom on

This to me just seems so obviously corruption and cronyism. Immelt hasn’t created American jobs in GE, he hasn’t done particularly well as CEO (just look at their stock prices), GE workers pretty much hate him.
But GE owns NBC which is the number 1 shill for BO, and GE relies heavily on government contracts, and BO needs a billion dollar for his 2012 campaign.
It’s pure banana republic public policy at this point.

I had forgotten they got bail-outs. Makes it even more ludicrous.