Tuesday
Mar102009
Can You Say 'Fiduciary'?: GE Has No PE: Mark McHugh From Across The Street
Glance at this interesting post on the lies at GE.
Mark McHugh is the author and his blog is called Across The Street.
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Mar 10, 2009 at 1:45 AM
Reader Comments (4)
Thanks so much for posting the link DB, I hope I can return the favor. I know that your "ripping asshat CEO's" tag was probably a goof, but I thought the piece was appropriate for the bail for several reasons. To me, GE is the "stealth" bailout. I suspect (but can't prove) that GE has benefited greatly from the various Fed programs. The fact that GE had a AAA credit rating (until today) made it eligible collateral for the TSLF, TAF as well as the backstop provided by the Commercial Paper Funding Facility. All these things have created an artificial market for GE's debt paper and that, by itself, is a bailout.
The connection I was hoping to get readers to make is that there is a pattern with these bailouts. The CEO declares the company has a strong balance sheet and doesn't need any capital. The next thing you know they're raising capital. The lying is criminal when you have a fiduciary duty to shareholders, and yet the government and the Fed let CEO's like Immelt skate on this. Why? Because they're up to their eyeballs in his worthless paper. Like I said, it's a "stealth" bailout. Immelt is a director of the New York Fed. That makes me livid.
But really, I just wanted to say THANKS and break a leg on the radio tonight!