Sens. Corker, Warner Sponsor Bill To Get Govt. Out of AIG, GM, Citigroup
Banking committee members Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) are sponsoring a bill that would get the government out of AIG, General Motors and Citigroup in a novel way: by transferring ownership control to a limited-liability corporation run by trustees.
The LLC is designed to be an exit strategy for the government to get them out of any company where it holds a greater than 20 percent stake. As of this fall, that will include only troubled insurance giant AIG, troubled automaker GM and troubled super-bank Citigroup.
Under the bill, the LLC would work this way: it would be run by three "independent, non-political trustees appointed by the administration" who are charged with liquidating the government's interest in the three companies by Dec. 24, 2011, the bill says.
“We envision these trustees as people with great experience in the private markets with a record of success in running profitable companies or turning around unprofitable ones," Corker said, in a statement. "These won’t be paid positions. They would do this as a public service for our country."
A couple of observations:
a) Good luck finding three qualified applicants who are smart enough to be trustees on this LLC and unwind the government's interest in three of the world's biggest, most complicated, messed-up companies who will work for free. Then again, for some reason, Edward Liddy agreed to be the government-appointed chief executive of AIG for $1 per year.
b) This bill is probably more of a statement than a living document that has a chance of becoming law. Which is fine. That's one of the jobs of legislation.
June 17, 2009; 4:17 PM ET
Categories: The Ticker | Tags: AIG, Bob Corker, Citigroup, GM, Mark Warner
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Posted by: Dermitt | June 19, 2009 11:24 AM | Report abuse
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