Why Not Regulate General Electric?
Research for Online Investors

by John Dalt

10/28/09

Kenneth Feinberg, White House & Treasury Pay Czar, appeared before the House Oversight Committee this morning.  Why doesn’t he regulate pay at General Electric?

Feinberg is regulating pay at seven firms that have taken TARP Funds.  They are American International Group (AIG), Citigroup (C), Bank of America (BAC), General Motors, GMAC, Chrysler, and Chrysler Financial.  Why not Fannie Mae, Freddie Mac and General Electric?  Fannie Mae and Freddie Mac already have managers appointed by the government and heavy oversight by treasury and the congress, but why not General Electric?

We reported on 7/21 in ‘California Leavin’ that “General Electric had raised $74 billion in FDIC backed loans (over 20% of the total FDIC backed securities), with another $50 billion in guarantees available.” We wonder, why not set Brian Williams’ (NBC News Anchor) pay? Tie it to long-term value creation, if he does not improve the evening news ratings, cut his pay.

If General Electric defaults on its loans, the U.S. government is on the hook for more than any of the above, except AIG.  It would be great drama to watch the White House Pay Czar cut the pay at General Electric and NBC.  General Electric has bent over to ‘play ball’ with the Oh! Bama.  Jeffery Immelt (CEO) serves as a White House Advisor, currying favor with the present occupant.  He is playing the game according to Chicago Rules.

This is what happens in a socialist system; all powerful government officials and bureaucrats can dictate your company’s success or failure.  As we reported on July 13, Immelt made a call to CNBC in the spring, warning on air personalities to tone down their criticism of Oh! Bama’s policies.

Subscriber C.H. wrote in about the ‘Cap and Trade’ bill currently being debated in congressional committees.  Her email was titled, “Selling Your House - Hope & Change at Its Socialist Best.”  The bill has made it out of the house and currently sits in the Senate.  It is H.R. 2454; you can read it at the Library of Congress Thomas site.  The version we have linked to is as it sits in the Senate.

Sections 202 and 204 require that state and local governments institute pilot programs, then full implementation of energy efficiency testing for commercial buildings and homes.  The tests for energy use result in a label designating your building’s energy efficiency.  This is just one of the intrusions the government wants to make into your life.  It may not be long before you will need a ‘label’ on your home to sell it.

David Letterman forgot the advice my first boss gave me, he said John, “Leave our secretaries alone, don’t get your meat where you earn your potatoes.”  Nell Scovell, a former writer for Letterman, writes in Vanity Fair online that it was a “hostile work environment.”  She alleges other male executives, along with Letterman, were having sexual relationships with employees and the women gained professional benefits from those relationships.  Associated Press has the story at, “Ex-Letterman Writer Claims Hostile Environment.”

The market is trading its way down to support at 1030 on the S&P 500  I am surprised we didn’t see a little rally today, just to shake up the bears.  We expect the buyers to defend 1030  This may be seen as the chance to enter the market, the pullback everyone has been talking about.  We shall see.  If you would like our take on the market every morning, along with a recommendation or two, why not subscribe to SwingTrader?   It costs less than two bucks a day.

From subscriber M.L.
Congress says they are looking into this Bernard Madoff scandal.  The guy who made $50 Billion disappear is being investigated by the people who made $1.5 Trillion disappear.  Go figure!

You really don't expect much do you?  He was reported to the SEC repeatedly.  No one is demoted or fired.  No, we need more regulations!---John

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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