 |
||
In his press conference today, Obama says he wants Detroit automakers to come up with a "plan" before they can receive a bridge loan that will keep three million jobs from being lost as we teeter on the edge of a global depression.
I guess this is the plan for Citi and AIG:
AIG, Citibank and a number of other federally bailed-out financial institutions have no plans to cancel hundreds of millions of dollars in sports team sponsorships, even as they take billions in taxpayer support, ABC News has found.
In boom times, the sponsorships were seen as a way to advertise the firms' "brands" and appeal to potential customers. Even today, at least one bank told ABC News that a naming deal was increasing its revenue. But critics, including a member of Congress, say the decision to continue them now is hard to defend.
Struggling Citibank just sealed a multi-billion-dollar emergency "backstop" deal with the U.S. government. The financial behemoth, suffering with billions in bad mortgage-related assets on its books, recently shed 53,000 workers and saw its stock price lose over half its value. Yet it's in a 20-year contract to pay the New York Mets $400 million to name the team's new stadium "Citi Field."
"This type of spending is indefensible and unacceptable to Citigroup's new partner and largest investor: the American taxpayer," said Rep. Elijah Cummings, D-Md., in a statement Monday.
As the holiday season approaches, there are a million UAW pensioners living in fear right now because pontificating, sanctimonious, disingenuous creeps like Richard Shelby are on TV preaching that they must give up the retirement funds they spent a lifetime contributing to because they make Detroit "uncompetitive" with Japanese automakers in his state. No mention is made of the very non-"free market" incentives offered to foreign automakers to get them to build plants in his state, or that right-to-work states like Alabama give foreign auto makers a protective advantage by making it illegal to unionize.
Pelosi and Reid want to be reassured that no bonuses will be given out to anyone in the auto industry making more than $200,000 a year, while Wall Street bonuses will actually be more generous as a result of their bailout. They want Detroit to promise that bridge financing money won't be paid in dividends to stockholders, yet the Treasury said it was okay for banks to pay out half of the funds they received to shareholders because "suspending quarterly dividend payments would have deterred banks from participating in the voluntary program."
Obama now says that the automakers must prove they can be profitable and create more fuel efficient cars before they will get federal assistance for a problem caused by mismanagement of the same financial institutions who had no strings whatsoever put on their loans, despite the fact that there is no proof that people will buy more fuel efficient cars when gas prices are low -- something the government can affect, but which the automakers have no control of whatsoever.
But thank gawd A-Rod can still pick up the tabs for those spending sprees if he wants to get busy with Madonna. I was getting worried there for a minute.
Jane Hamsher blogs at firedoglake.com
Follow Jane Hamsher on Twitter: www.twitter.com/janehamsher
Loading comments…
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
Sports sponsorships are ugly, and a blight.
I quit attending Portland Oregon's Starlight Parade, when it "became" (was stolen) the "Alaskan Airlines Starlight Parade. Corporatists have no perception of -- or appreciation of -- customs and culture. Putting a Corporate moniker on a cultural tradition should be well outside of acceptability, but it's become the "norm."
I for one will never patronize any "branded" civic celebration, event, or venue. If that happens to cut back into the deep pockets of those who try to "buy" recognition with money, well, that's the idea. Just as I don't buy products that pollute, I won't buy the ersatz "culture" sold by Corporatist sponsorship.
Sign me:
One Of Many
Want to cut the fat in America? Start by eliminating all these games, salaries, advertising etc. Lets put all that money and effort into something that will help people.
What do you suppose the odds are that of the 53,000 employees "shed" by Citi, the lion's share were low level, "hourly" type employees?
Obama is a liar. He had Michigan and Ohio with his false promises of support for the automotive industry. Watching the Obama/Democratic whipped boondoggle going on at the Hill, why would it occur to anybody that they would need to bring a plan? I know, Detroit's plan is to morph into a bank just like American Express. OBAMA IS A LIAR.
Sometimes the best support for someone in trouble is to make them admit their responsibility and hold them accountable for making the necessary changes in their behavior. I have no problem with supporting the auto industry, but not without extracting some reasonable assurances that they will act responsibly. I just wish that the same approach was used in the financial industry instead of blind support of their "house of cards" while they continue playing their "shell game" with the American public.
I am with you there, and there seems to be a double standard when it comes to financial institutions. I am also frustrated with the dems on the auto loans and the notion that union workers have to make sacrifices when the CEO of citi made $200 Million this year. Obama needs to remember the thousands of union workers who knocked on doors to get the vote out, and delivered MI, OH and PA.
Im sorry, I must have heard incorrectly. Isn't Obama in favor of saving the US auto industry?
Obama appears to be in favor of helping the auto industry. He can do nothing to save them. The auto industry must save themselves, and based on previous experience and analysis of their decision making, there is confidence that they can or will do it.
I wish everyone would stop calling it a bailout and start calling it what it is, GRAND THEFT LARCENY.
In all fairness, it is a domino effect. Sports franchises do not just employ athletes but food service, concession, and maintenance personnel, as well as sales and marketing and many other jobs. 1000s of jobs will be saved with one franchise alone. Jane, with all due respect, I suggest you research your subject matter just a wee bit more...
I'm with you on this.
The misery loves company philosophy appeals to our lesser selves.
This is a myth. It has been studied and shown that sports teams do not add as much to the economy as they take away. It is a luxury and not a necessity, and luxuries always cost.
Even assuming this argument has merit, this pales in comparison to the millions that will be lost if the Big 3 fall. And really, how much of that 'naming' money goes to support staff and how much to pay the outrageous salaries of atheletes?
GM balied out of its multi-million dollar contact with Tiger Woods yesterday, as part of their efforts to show they 'have a plan'. But then, Citi didn't even have to come to the table to get their money. The money was expressed to them on a silver platter. Their execs didn't even have to gas up the private jets, or even the limos.
have you all seen this movie?
http://www
the auto industry needs to come back to congress with new management
And why the he** are people worried about what the big three automakers will do with a relatively measley 25 Billion when Citigroup (not Citicorp, Mr. Bush) plans to still spend 400 million on CitiField? When AIG paid out stockholder dividends and did not make more credit available?
Pure and simple - Republicans want to bust the unions and the whole situation is so revolting in the first place that Democrats are kind of willing to go along with it.
Yes, they need to get rid of their current CEOs, come up with a business plan, but AIG and Citigroup should have been required to do the same!
Frankly, when Obama takes care of health care - which it looks like he will do relatively quickly - the right wing will not have the fall back of old union contracts and their financial liabilities to complain about as an excuse for busting unions!
Heaven forbid they should actually use OUR millions and billions to keep people working or in their homes.
Re: Getting out of long term contracts, as in " Yet it's in a 20-year contract to pay the New York Mets $400 million to name the team's new stadium "Citi Field."
There is a general principle of contract law referred to as a "material change in circumstance", which could be applied to cancel such contracts.
And as to the Treasury saying it was okay for banks to pay out half of the funds they received to shareholders because "suspending quarterly dividend payments would have deterred banks from participating in the voluntary program." , may I be so bold as to point out that Citibank's bankruptcy would have resulted in a quick stop to paying out quarterly dividends. Similarly, that 20 year contract with the Mets would also have died a quick death.
Hello!! I am not a brain but did anyone ask how much the US government has? How much? Is there a financial report for that? It seems everyone can subtract but, is Jethro doing the books?
No kidding! I can't wait until the corporations can't spend the money to sponsor professional sports. I can't wait! Maybe someday I can go to a football game again?
No mention is made of the very non-"free market" incentives offered to foreign automakers to get them to build plants in his state, or that right-to-work states like Alabama give foreign auto makers a protective advantage by making it illegal to unionize.
Is it illegal to unionize in any state?
When did this happen?
You are right, the Right to WOrk laws just state that you do not have to belong to the union to keep your job. That is a position that this Liberal supports. Unions are good, but like Business is good, only in moderation.
Im not sure what the deal was with the automakers in Alabama, but unions are not illegal here. Before the Lee jeans company moved all their plants to Mexico, I worked for them and was part of that union.
I have heard of some manufacturing companies here that threaten their employees with being fired if they are caught even speaking to a union Rep. They will go as far as stationing a supervisor outside to keep watch.
When the president of the UAW spoke on CNN a few days ago, he listed all the concessions made by Alabama to foreign auto workers. He was very articulate about the dollar amount. What he did not mention, and I would be curious to find out, is how much the US autoworkers have received in Fed aid to date. He forgot to mention that part.
And why are they being allowed to continue these sponsorships? Because sports teams are "too big to allow to fail"?
Good thing *I'm* not in charge. Boy, would they be sorry.
But hey these are "CORPORATE CITIZENS" !!!!!!!!!!
You must be logged in to comment. Log in or connect with
