Republican (Darrell Issa) seeks to bar GM, Chrysler from hiring lobbyists

[Ed Barrow]

Source: Detroit News

A Republican congressman will attempt Thursday to bar two domestic automakers and other government-owned companies from employing lobbyists.

Rep. Darrell Issa, R-Calif., the ranking member of the House Oversight Committee, plans to introduce the amendment during a negotiating session Thursday between House and Senate members on a sweeping overhaul of the nation's financial system.

The amendment would bar government-owned companies from employing lobbyists, said Kurt Bardella, a spokesman for Issa.

"Any company that is owned by the taxpayers should not be allowed to hire a lobbyist until the taxpayers' dollars have been fully recouped," Bardella said. "Talk about a revolving door situation -- there is no justification for allowing a company subsidized by taxpayer dollars to hire a lobbyist so they can try to influence the very government that owns the company."


Read more: http://www.detnews.com/article/20100616/AUTO01/6160419/Republican-seeks-to-bar-GM--Chrysler-from-hiring-lobbyists

[NC_Nurse]

1. Then all the banks shouldn't have been allowed to lobby since they got bailed

out. What about AIG and Citi? They still owe money to taxpayers. And all the other banks lobbied furiously with our money since DAY ONE of TRAP.

Fuck Issa.

[alfredo]

2. We didn't buy them, we loaned them money. Issa is full of shit.

[Psephos]

10. You're mistaken. US Government currently owns about 61% of GM.

Canada owns 12%, and the UAW 17%.

In addition to the major equity rescue, the government also loaned money directly to GM, and additionally set up a line of credit.

GM received a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments. The U.S. considered $6.7 billion of the aid as a loan, while the Canadian governments designated $1.4 billion of their contributions as loans.

Repayment of the $6.7 billion loan (not equity) to the U.S. government made in April came five years ahead of schedule. However, those payments were not made from earned money, but rather, from unused borrowings. In other words, GM used borrowed money from the US government to make its payment to the US government.

GM still owes $45.3 billion to the U.S. and $8.1 billion to Canada.

[alfredo]

11. Just like the mortgage company owned my house until I paid

the mortgage off in full. They didn't live in the house or maintain the property. As long as I lived up to the contract, I could continue to possess and enjoy the house.

We the taxpayers hold the mortgage and GM is hoping to keep a roof over its head. We would only take possession if they can't fulfill their obligations.

[Psephos]

13. It sounds like you don't understand the concept of equity (i.e., stock ownership).

A mortgage is a loan. A stock purchase is actual ownership. Ownership is not a loan.

The US government owns 61% of the shares of GM. That's where most of the money went. Not into loans. Into stock.

The only way to recover that money is to sell the shares. So far, they are not publicly traded. In other words, the shares cannot currently be sold.

* GM received $49.5 billion — $14.5 billion pre-bankruptcy and $30.1 during bankruptcy.
* Of the $30.1 billion, $16.4 billion was placed in an escrow account.
* $2.8 billion in the escrow account was used to resolve Delphi’s bankruptcy thus reducing the escrow account to $13.7 billion.

In exchange for the disbursement of $49.5 billion, the government received:

* 60% stake in the new GM.
* $7.1 billion in interest bearing debt.
* $2.1 billion of preferred stock.

Through TARP, the government gave GM $49.5 billion in exchange for a mixture of debt and equity. If and when market conditions permit, and more importantly, when it appears that GM can stand on its own without a government crutch, there will be an Initial Public Offering (IPO), which will convert the current privately-held shares into publicly sellable shares, which will be listed on the stock exchange. The US government will have to sell its shares for a higher price than GM shares ever attained in the history of the company in order to get its money back. But the company is drastically smaller now, yet still burdened with huge legacy costs and costs of production that are greater than its competitors. Those shares are not going to sell for even a quarter of what's needed. The US Treasury has recently admitted that most of the money will not be recovered.

[alfredo]

16. Who is running GM? Who controls the day in and day our operations?

If we truly owned GM we'd be controlling operations, it would be in our name, and our name would be on the paychecks to the workers. The would be government employees, not GM employees.

[Psephos]

17. Nice discussing things with you...see you around. n/t

[Posteritatis]

21. The people the majority owners permit to run day-to-day operations. (nt)

[alfredo]

22. That's it. We are just the money behind the business, and

because of that we have some say, but we did not take over GM. It's the difference between the legal definition and the real situation. We loaned them the money because the banks we loaned money to would not lend any money. The banks forced our hand on this by not using the bailout money as intended. Banks wanted GM to liquidate so they could buy their assets for cents on the dollar.

[Barack_America]

3. That policy would do WONDERS for the banking industry...

...which the government also happens to own.

[bluestateguy]

4. Apply it to the banks and insurance cos. and I'll support it

nt

[bongbong]

5. Simple solution

GM should rename itself "General Rifles & Cars". They did make M-16's during the Vietnam War (unfortunately).

Then the repigs would bend over backwards to give them anything they wanted.

[Gormy Cuss]

6. Hey, Issa -- if it's okay for the government to employ car thieves...

Rep. Issa was charged in San Jose auto theft
June 25, 2003|By Lance Williams, Carla Marinucci, Chronicle staff writers


Republican Rep. Darrell Issa, the driving force behind the effort to recall Gov. Gray Davis, was prosecuted with his brother in San Jose in 1980 for allegedly faking the theft of Issa's Mercedes Benz sedan and selling it to a car dealer for $16,000, according to court records.

http://articles.sfgate.com/2003-06-25/news/17495484_1_car-thefts-car-thief-car-alarm-business

why not lobbyists?

[Mr. Sparkle]

7. I would hazard a guess that most of their lobbying is aimed towards the Democrats.

I wish the President would put a moratorium on all lobbying for the next 100 years.

[OhioChick]

8. Let's get rid of ALL lobbyists!

Financial, Big Pharma, Health Industry, etc. etc. etc.


A girl can dream, can't she? :)

[FBI_Un_Sub]

9. Issa is filth. NT

[BadGimp]

12. This one pegs the Irony meter, hell it Breaks it!

re:

"Talk about a revolving door situation -- there is no justification for allowing a company subsidized by taxpayer dollars to hire a lobbyist so they can try to influence the very government that owns the company."

I mean does he even see the hypocrisy in his own words? Apparently it's ok with dimwit Darrell that every other company and monied interest on the planet can hire lobbyist and "influence the .... government", but not ones that took LOANS from same. The US Government does not OWN GM or Chrysler.

oh God my head hurts just thinking about this AssClown.

[Psephos]

14. "The US Government does not OWN GM..."

As 61% majority shareholder, the US Government actually DOES own GM. The Canadian government and the UAW own the other, minority, fractions.

[Zorra]

15. What a dumbass. GM paid back the loan. n/t

[Psephos]

18. Here's a good article from the financial blog SeekingAlpha concerning that repayment.

http://seekingalpha.com/article/200524-how-gm-paid-back-its-loan-from-the-government

SeekingAlpha is nonpartisan, btw.

[Oerdin]

19. Free Speech?

Just a couple of months ago Republicans were saying Money = Free Speech so I guess they're anti-free speech.

[Posteritatis]

20. He's basing the argument on the fact that GM's US gov't-owned now

and that government-owned bodies shouldn't lobby, uh, the government. So the government can't try to persuade the government about things.

The argument falls down somewhere...

[truebrit71]

23. Obviously Darrel "the car thief" Issa's checks have stopped coming in...

..this toad is beneath contempt..

[Doctor_J]

24. Given that the current courts have ruled that laws can be applied only to specific instances

(see Bush v. Gore), this will likely be fine.