President Obama issued an ultimatum to GM and Chrysler today, setting out strict guidelines for the carmakers to meet before obtaining more government aid. Coupled with the forced resignation of GM CEO Wagoner, the Obama administration’s heavy-handed approach to Detroit, as compared to its approach to Wall Street, seems to indicate a double standard. Why not bank CEOs? asks David Sirota. The Huffington Post’s Sam Stein notes that Gibbs struggled to explain the differing approaches.
The irony of this is that a major Wall Street private equity firm actually owns 80% of Chrysler, but has managed to avoid serious scrutiny during the bailout process. Take it from Yahoo Finance’s Tech Ticker: