Obama takes hard line against GM and Chrysler

[0:07] ..." taxpayer dollars and a strict restructuring plant but it will be without Rick Wagoner its CEO of almost a decade Wagoner went to Washington in his bid to give more of that federal cash only to be told the President Obama didn't want him in charge of the auto giants anymore. He -- quietly. Is this a positive step towards restructuring and ailing company or a political move to satisfy a public thirsty for the blood of high flying corporate executives. I've posed that question ABC political analyst Steve Roberts."...

[0:48] ..." gone from 33%. Of the auto market in America to 18% its stock price has gone from 35 dollars a share three years ago to three dollars and change today. But aren't these same time I do think they -- political reasons there's been a tremendous. Outcry in America against the pay offs to. And bonuses to AIG executives in recent weeks and Wagner has become a victim of that to some extent. While there definitely people now saying okay this is great start let's get these Wall Street CEOs to fall under sorts -- well. I do think that. The administration is definitely responding. But they made an important distinction over the last couple weeks. When they were dealing with AIG a big insurance company in the big banks the argument was look no matter how angry you are these folks. These institutions"...

[0:00]" I'm Kendall buhl for WBZ Newsradio. GM may someday people out of its financial nosedive with the help of billions of taxpayer dollars and a strict restructuring plant but it will be without Rick Wagoner its CEO of almost a decade Wagoner went to Washington in his bid to give more of that federal cash only to be told the President Obama didn't want him in charge of the auto giants anymore. He -- quietly. Is this a positive step towards restructuring and ailing company or a political move to satisfy a public thirsty for the blood of high flying corporate executives. I've posed that question ABC political analyst Steve Roberts."

[0:38]" I think it's boat there's no doubt that. There were economic reasons for replacing Rick Wagner and as the company lost thirty billion dollars last year. It's gone from 33%. Of the auto market in America to 18% its stock price has gone from 35 dollars a share three years ago to three dollars and change today. But aren't these same time I do think they -- political reasons there's been a tremendous. Outcry in America against the pay offs to. And bonuses to AIG executives in recent weeks and Wagner has become a victim of that to some extent. While there definitely people now saying okay this is great start let's get these Wall Street CEOs to fall under sorts -- well. I do think that. The administration is definitely responding. But they made an important distinction over the last couple weeks. When they were dealing with AIG a big insurance company in the big banks the argument was look no matter how angry you are these folks. These institutions are absolutely essential to the financial health. Of the entire economy they're taking a somewhat different tone with the auto company. There are sending a much sterner message while they're certainly making much more stringent requirements for the federal money as they're getting. Very carefully picking apart these restructuring plans are in danger of micromanaging an American businesses yes I mean it's a very very unusual circumstance but also let's remember GM took fourteen billion dollars of federal money so when you do that. The US certainly encourage some obligations did you think that this formula is going to be applied to other industries. It could be of course one of the possible reactions to this is more and more companies saying I'm not going to take federal money. Because if you take as much as Rick Wagner did you definitely hand the federal government leverage over you that they never had before. Acts ABC's Steve Roberts I'm Kendall buhl for WBZ news radio 1030."