Rick Wagoner Goes But Ken Lewis Stays?

We agree that GM CEO Rick Wagoner should have been sacked.  He had eight years to turn General Motors around.  Instead, he presided over a collapse of market share, stock price, and, ultimately, a 100-year old organisation.  If that’s not cause for get the boot, we don’t know what is.

But given that it wasn’t GM’s board that sacked Wagoner, but the US government, what’s with the double-standard? 

How can the government demand Wagoner’s ouster and then stand by as Ken Lewis destroys the investment US taxpayers have made in Bank of America?  Don’t Bank of America shareholders and bondholders deserve a fresh start?  Wouldn’t investors be more likely to believe the assertions and promises of a new CEO who hasn’t already destroyed his credibility and doesn’t have a vested interest in defending the mistakes Ken Lewis has made?

We’re glad the US government is finally demanding some accountability.  We’re just not sure how it rationalizes this double-standard.


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