Tuesday, August 14, 2012

Nothing To Worry About Here: Government Motors Bidding On Bank of Obama

Somehow I doubt that this has the makings of an arms-length transaction: GM (26% owned by the government) is bidding on the international operations of Bank of Obama Ally Financial (74% owned by the government).

In other words, a car company controlled by the Obama administration is bidding on part of a bank controlled by the Obama administration. If the Obama administration weren't such a model of financial probity, I'd be worried.

It's entirely possible, of course, that this transaction gets done on rational terms; the fact that GM is a public company should be at least a partial check on mischief. Yet given the epic dishonesty that has surrounded the Obama administration's dealings with both the auto and financial industries, I don't think they deserve the benefit of the doubt. 

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