LARRY ROIBAL

Ball point pen on the morning newsprint

General Motors CEO has resigned at the request of the White House. GM is given a 60 day window to restructure the company.

Ball point pen on the morning newsprint

Yesterday, auditors from the Deloitte & Touche accounting firm reported that despite the $13.5 billion GM received in bailout money “recurring losses from operations, stockholders’ deficit and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern,”
GM has lost $82 billion in the past three years including $30.9 billion last year. The company’s stock closed yesterday at $1.86 per share. Yet despite all that abysmal news, the audit revealed Rick Wagner’s pay package for 2008 was worth $14.9 million.

Yesterday the dow closed at 6,594. How can investors feel confident in the market with these modern day Neros in charge?

Did we really need Deloitte & Touche to tell us that GM’s business model was broken? Even a guy who draws pictures could see the writing on the wall. Some past doodles of Rick.

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Ball point pen on the morning newsprint

G. Richard (Rick) Wagoner Jr. has been the CEO of General Motors since May 1, 2003 when GM stock price was 35.50 per share. This year GM isn’t performing very well, Saturn sales -19%, Buick sales -21%, Saab sales -29%, SUV sales -37%. …at yesterdays close $10.24.