July 13th, 2009 by DaveAdmin
General Motors spun off much of its parts business, Delphi, in 1999. The idea was to lower costs for GM by allowing more competitive bidding (rather than giving Delphi an in-house advantage), and to increase Delphi’s sales by separating it from GM. The end result, however, was a disaster for General Motors. Delphi declared bankruptcy [...]
February 26th, 2009 by DaveAdmin
Head of the Fed Ben Bernanke flatly ruled out a government takeover of major banks, such as Citigroup, that would wipe out stockholders.
Rhetoric is rather different when talking about banks vs. automakers. When they mention GM and Ford, they say the stockholders deserve nothing because they were asleep at the switch. Automaker bankruptcy has almost [...]