Tuesday, December 23, 2008
US corporations are about to find out the perils of taking government money. Citizens want transparency in how it is used. Banks appear unprepared for the accounting they will be forced to give. Will auto companies be the same? From a PR standpoint, it should be obvious that taking public funds requires a public statement of the use of them. If companies are uncomfortable with government intrusion into their businesses, then they should not line up for loans. The new Congress will almost certainly hold regular hearings into how corporations are spending Federal money -- or not -- and will almost certainly tell CEOs what they should be doing, whether CEOs like it or not. If there is one spur to paying off these loans and getting the government out their businesses, constant Congressional kibitzing is it.