Yahoo Finance posted an interesting story yesterday morning, one that describes the reasons former GMAC CEO Alvaro de Molina was forced to step down.
In the news are the details of GMAC's years long financial woes. Molina was in charge of the company for only the last two. But that didn't stop the CEO from having a very clear cut difference of ethical opinion in opposition to GMAC's board of directors.
For anyone who's been following the company's difficulties for even a short time, the memories of bailout monies and other government guarantees are fresh. GMAC received $12.5 billion in bailout funds; had $7.4 billion in loans publicly guaranteed by the FDIC; failed the government's stress tests, and still needs to raise another $11.5 billion to get back on its financial feet. But so far it hasn't been able to raise the necessary money, nor has the company cut its costs enough to aid in its own solvency. Which means... the company is back with hat in hand, ready to once again accept government money to the tune of at least another $5.6 billion in greenbacks.
The essence of the issue is this: the board wants the money; de Molina doesn't. So the board has forced him out for a very specific reason. He refused to accept money that his company didn't earn. He refused to take your tax dollars. How ironic. When we read of one man of good conscience, among all of those others who are so quickly willing to sell out their morals, their ethics and their companies, just to prop themselves up for a little while longer, it's in an article that states “...de Molina steps down.”
Say “goodbye” to the large companies that deserve your business because they provide you with everything you want, need and actually use. And say “hello” to the companies that stay afloat due mostly to their political connections.
Laissez-faire has been dealt some serious blows over the course of these last couple of years. Every part of the stimulus program, and every aspect of the TARP program, has made doubly sure of that. But also know that when good people of conscience are being pushed out of the doors of formerly competitive companies because they still believe in laissez-faire, the death noose has been tied. It's just the changing face of what used to be American capitalism.
