Comments on: Bailout Watch 526: Supplier Bailout Fails Dramatically

By: willman

willman — Tue, 12 May 2009 00:56:40 +0000

@buzzliteyear wins the cigar!

-I think it was Citibank that was one of the stress-test banks that was ultimately in trouble.

By: Robert.Walter

Robert.Walter — Mon, 11 May 2009 22:02:07 +0000

If you think the 3% discount for immediate payable, or the 2% discount for 50 days payable (up from 45 days normally) is bad…

Chrysler wanted suppliers:
- to sign a Retraction Agreement cancelling all claims;
- stay in the program 12 months (life of the original program);
- 10% holdback for potential disputes (with no explanation of when or how the 10% would be returned to the supplier);
- potentially requiring the suppliers to stay a supplier until the end of each program they supplied;
- if the supplier sold in a currency other than USd ,then the supplier had to convert to USD at an undetermined exchange rate…

The whole deal was just so odeous that I know more than one supplier that was scared away…

By: wsn

wsn — Mon, 11 May 2009 21:08:15 +0000

# Ronnie Schreiber :
May 11th, 2009 at 2:06 pm

The Feds need to ask Toyota how to run a proper keiretsu. The send the business to TARP partner Citi, but Citi fell down on the job.

——————————————

No, don’t ask Toyota!

What if Toyota answered “get rid of UAW?” What will Obama & Co. do?

To be clear, this is not a bailout of GM. This is a bailout of UAW.

To bailout GM, all the government need to do is let GM go to C11, void all existing contract. And then, Toyota/Honda/Nissan would probably inject cash and buy part of GM and make it work. But then, Obama’s mission is to protect the poor UAW workers from the big bad Toyota business model.

By: Old Guy Ben

Old Guy Ben — Mon, 11 May 2009 21:00:13 +0000

Clearly, $5 billion was not enough. We need to stop dribbling money at the problem, and pour it on!

(I borrowed this fabulous idea from one of the GM potential bankruptcy threads, or Chrysler bankruptcy inaction threads. Or both.)

By: mel23

mel23 — Mon, 11 May 2009 20:56:25 +0000

The Government by its very nature is totally incapable of running anything efficiently and on-time!

Know anyone on social security? Ask them about the reliability of their payments. From what I read, the VA is way ahead of most others in the automation of medical IT. Etc.

By: buzzliteyear

buzzliteyear — Mon, 11 May 2009 19:35:49 +0000

It would not surprise if we found out later that Citibank was keeping the $5 billion on hand as ‘capital’ to make its ’stress test’ results look better.

Enron did something similar where they counted money on deposit as collateral (i.e. security in case counterparties did not pay them) as ‘cash flow from operations’.

By: unleashed

unleashed — Mon, 11 May 2009 19:33:21 +0000

To ask Toyota? And then what?
The Government by its very nature is totally incapable of running anything efficiently and on-time!

By: Ronnie Schreiber

Ronnie Schreiber — Mon, 11 May 2009 19:06:02 +0000

The Feds need to ask Toyota how to run a proper keiretsu. The send the business to TARP partner Citi, but Citi fell down on the job.

By: MikeyDee

MikeyDee — Mon, 11 May 2009 18:42:26 +0000

When hundreds of auto suppliers start shutting their doors, this is when the REAL recession will begin. I have the answer for these families who depend on the auto supply business to put dinner on the table…

Buy lots of oatmeal. Eat oatmeal for breakfast, lunch and dinner. You can save lots of money on food and you can feed a large family economically. If your kids complain after three weeks of eating oatmeal, switch to potatoes.

You think I’m kidding? The 30’s are coming back.

By: gossard267

gossard267 — Mon, 11 May 2009 18:35:56 +0000

So far so good on the stimulus money!

http://abcnews.go.com/US/wireStory?id=7553833

By: John Horner

John Horner — Mon, 11 May 2009 18:23:12 +0000

They don’t call it Shittybank for nothing.

By: moedaman

moedaman — Mon, 11 May 2009 18:21:04 +0000

And why would anyone think a government program would run smooth?

By: tced2

tced2 — Mon, 11 May 2009 18:11:02 +0000

If the government can’t efficiently handle $5B think about the possibilities of $700B+ (the “stimulus package”).

By: GS650G

GS650G — Mon, 11 May 2009 17:54:06 +0000

Overwhelmed, eh? While 5 billion sits somewhere nice and warm.

Give me the 5 billion and I’ll watch over it while the paperwork get’s reviewed. I’ll even answer a few emails and phone calls.

By: kowsnofskia

kowsnofskia — Mon, 11 May 2009 17:53:23 +0000

Glad to see that Citibank’s legendary shitty customer service extends all the way up to its corporate customer network.