Over the past two days, the executives of the Big 3 automakers spent alot of face time in front of House and Senate Committees making their case for government financial help. They faced alot of questions about how they would use the funds and how they will get organized to emerge healthier and able to pay the money back.
So my question is — how come the banks did not have to face this kind of music?
You can argue that the questions were largely theater and I’d be inclined to agree, but the banks have gotten (and apparently will get) way more money than the $38B that the Big 3 are asking for. And these banks are not using their new-found liquidity the way that was expected, and apparently neither the Treasury or Congress has implemented a robust oversight of the banks and how they use your money. Back when the bailout of the banks was urgent, I argued that the Congress ought to figure out the minimum effort to stabilize the banks and do that, then take a little time to do some research (including talking to the banks) to formulate a smarter, longer-term solution.
So how come the banks were allowed to be represented by Paulson and his hair on fire, but the Big 3 needed to show up to justify their request?