General Motors only filed for bankruptcy on Monday, but already the skeptics who said a government controlled automaker was a recipe for disaster are being proven correct.The Wall Street Journal reports (subscription required) that "Top executives of General Motors Corp. and Chrysler LLC defended plans to cut thousands of car dealerships at a congressional hearing where senators questioned whether the dealers were being unfairly treated in the companies' downsizings."
In its role as the soon to be largest shareholder of General Motors, the United States government has a responsibility to monitor the company and its policies as they pertain to the interests of shareholders -- executive compensation, capital structure, board make-up, corporate governance, etc. But when was the last time you saw an activist investor complain about the way underperforming dealers at a company were being treated? I'll give you a hint: It's never happened.
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