July 15 (Bloomberg) -- President Barack Obama “strongly opposes” an effort in Congress to require General Motors Corp. and Chrysler LLC to restore relationships shed during bankruptcy proceedings, while stopping short of a veto threat.
The administration said today in a statement that “the decision by Chrysler and GM to rationalize their dealer networks was a critical part of their overall restructuring to achieve long-term viability in order to save jobs in the long run.”
The statement also said it would set a “dangerous precedent” to “intervene into a closed judicial bankruptcy proceeding on behalf of one particular group at this point.”
Bloomberg
June 9 (The Hill) Rep. Barney Frank (D-Mass.) said he doesn’t think his intervention on behalf of a General Motors center in his district will lead other lawmakers to do the same thing.
“I don’t think this will lead to a pattern,” said Frank, who convinced GM CEO Fritz Henderson to keep a distribution center in Norton, Mass., open for at least another 14 months.
The Hill
It appears that the precedent is only dangerous if someone other than Barney Frank asks for special treatment. The real danger is in allowing the government to run business.
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