Posted on 07/09/2009 9:23:16 AM PDT by Oldeconomybuyer
While the administration has been praised for its rapid reorganizations of GM and Chrysler, it has also been blamed for placing itself and its officials in situations with conflicts of interest.
The U.S. government stepped in to save GM by becoming its largest creditor and majority investor, positions that inevitably clashed with its role as regulator and referee of its pending deals with outside investors.
"Whenever you have a group that is regulator, owner and funder, there is a massive conflict of interest," said David Logan, associate dean at the University of Southern California's Marshall School of Business.
One of the most controversial moves came when the White House-appointed task force pushed Chrysler's secured lenders to accept 29 cents on the dollar owed for $6.9 billion in loans.
(Excerpt) Read more at reuters.com ...
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