Posted on 03/30/2010 7:36:27 AM PDT by opentalk
In the aftermath of World War II, the U.S. Senate War Investigating Committee called hearings in an attempt to publicly shame and excoriate industrial titan Howard Hughes. Hughes was accused of wasting taxpayer money on his F-11 and HK-1 projects. The hearings backfired as the stubborn Hughes accused the Senators of corruption and blackmail and of being beholden to his competitors, and he detailed the millions of his own dollars he spent on these projects.
The committee, embarrassed by the unexpectedly effective defiance of the infamous recluse, disbanded without filing a report.
Don’t expect that kind of defiance from the chief executives of AT&T, Verizon Communications, Caterpillar, and Deere & Co., if they respond to the demands of powerful Democratic Chairman Henry Waxman. In letters issued Friday, Waxman called on each of these CEOs to appear before his committee for the absurd purpose of defending internal memos to their own employees, and related statements to the press, about the impending changes in their health care plans.
..The trouble for Waxman and his fellow Democrat leaders arises from the direct conflict between the (accurate) statements of these companies and Obama’s oft-repeated promises that if you’re happy with your health care, nothing will change.
Obama said in Iowa City last week, “[My opponents] will have to finally acknowledge that this isn’t a government takeover of our health care system. They will see that if Americans like their doctor, they will keep their doctor. If people like their plan, they will keep their plan.”
The ludicrous nature of this claim didn’t prevent Obama from saying it again and again (but these are words, just words) even as the Associated Press, ABC News, FactCheck.org, and a multitude of independent groups found this promise inaccurate at best. These predictions were borne out within the week, as companies warned employees their coverage plans will change in the face of new taxes and cut off tax breaks for providing benefits.
In a regulatory filing last week, AT&T reported, “As a result of this legislation, including the additional tax burden, AT&T will be evaluating prospective changes to the active and retiree health-care benefits offered by the company.” It also announced that the health care legislation would result in a $1 billion first quarter non-cash charge against profits.
In some of these cases the companies are required to make 8-K disclosure filings detailing their shifting tax burden under the law. Federal law requires them to make these reports, and these companies would not have filed them if they didn’t have the internal and thorough documentation on the matter.
If the CEOs’ statements or subsequent testimony conflict with internal memos or downplay risks to their companies that eventually come to pass, or if they back off plans to save their shareholders money, they expose their companies and themselves personally to shareholder class-action lawsuits for securities fraud or breach of fiduciary duty. These would be filed, coincidentally enough, by Waxman’s allies in the trial bar.
Thus as CEOs face the choice of a fiduciary breach or a political backlash from partisan Washington, it’s still better to obey the law, even if a powerful Democratic Chairman gives you hell for it.
But compliance with the law is no excuse for embarrassing the President and his Congressional satraps. Waxman’s aims are clear: he must send a powerful signal to American business leaders that any criticism of Obama’s new health care regime, however well-grounded in the facts, will not be tolerated. You can’t govern a country with CEOs running around shooting off their mouths, talking about how your policies will hamstring their companies—especially if they’re telling the truth.
No one should expect these 21st century CEOs to follow Hughes’s example. They have shareholder interests to protect and massive government contracts they could lose. In the new American economy, the best way to get rich is to make something for the government, and no company wants to land on the feds’ enemies list. Even if the CEOs believe that Republicans will soon recapture Congress and send Waxman packing, back to the malodorous impotence of a Ranking Minority Member, they know that there are no certainties in electoral politics and that Congressional Democrats have long memories.
Waxman: “Are you now, or have you ever been a Capitalist?”
They need to go and defy him to his face. He is ridiculously ignorant and is a horrible abuser of power.
I hope these hearings are on C SPAN so we get to see what this maoist has wrought.
When are we collectively growing some spine? I am waiting for Zero start to calling in individuals instead of heads of organizations. Where does this tyranny end? When every conservative is behind bars for speaking his or her mind? WTF kind of “government” is this?
Eunuchs and traitors seem to be the overly abundant in America today especially infesting our Congress and Corporate America. Thank God these spineless, gutless, gonadless wimps weren’t around in 1941. Our fathers and forefathers must be rolling in their graves in utter disgust and revulsion.
When reality comes crashing around this little Waxman demon's head, he will subpeona God and make Him defend His actions.
I would be all to happy to go in there and explain How I have employees and shareholders to answer to. I would go on and on about the great things we do for our employees and even a few personal stories.
Then I would tell them the awful truth about being an officer of a publicly held corporation and how I had a fiduciary responsibility to take these charges or lay off a few thousand people.
People who are valuable to the organization. Then I would tell them what this means for people who’s pension is held and managed by large organizations who have invested in our stock and what that means to the retirees who depend on our performance.
Then I would stand up and tell him to show me where he every had the responsibility for the livelihood or dependence of thousands of people and personally had to sign his name to the front of a check, so someone could sign their name on the back and pay their rent or buy groceries.
Waxman is a freak of the greatest proportions.
They should limit their answers on any question to “Sarbanes/Oxley”.
Oh C’Mon
So nostrils Waxman wants companies to violate the rules for him so they can hide the true costs of Obozocare?
I am sure Waxman knows this, or maybe not.
My purchase decisions will depend on what they say. If they back down in the face of evil, I will be MUCH less likely to buy from their companies. Ever again. All economic activity is political from election day 2008 until real America wins or dies.
If ALL CEOs are enemies of Waxman, then NO CEOs are enemies. If they would rise up in unison, then they wouldn’t have to worry about losing lucrative government contracts. Of course, most might prefer to remain part of the corrupt system.
Where does this tyranny end you ask?
With the sacking of DC.
There is no other choice.
Nostrilitis needs to be put in his place.
Just “four corner” offense until congress changes leadership.
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