General Motors and the Carlyle Group

The new CEO of General Motors serves as a director of the Carlyle Group. In case any of you are not familiar with the Carlyle Group here’s a very brief resume of its members.

* James Baker III, former United States Secretary of State under George H. W. Bush, Staff member under Ronald Reagan and George W. Bush, Carlyle Senior Counselor, served in this capacity from 1993 to 2005.

* George H. W. Bush, former U.S. President, Senior Advisor to the Carlyle Asia Advisory Board from April 1998 to October 2003.

* George W. Bush, former U.S. President. Was appointed in 1990 to the Board of Directors of one of Carlyle’s first acquisitions, an airline food business called Caterair, which Carlyle eventually sold at a loss. Bush left the board in 1992 to run for Governor of Texas.

* Frank C. Carlucci, former United States Secretary of Defense from 1987 to 1989; Carlyle Chairman and Chairman Emeritus from 1989 to 2005.

* Arthur Levitt, Chairman of the U.S. Securities and Exchange Commission (SEC) under President Bill Clinton, Carlyle Senior Advisor from 2001 to the present

* Luis Téllez Kuenzler, Mexican economist, former Secretary of Communications and Transportation under the Felipe Calderón administration and former Secretary of Energy under the Zedillo administration.

* Frank McKenna, former Premier of New Brunswick, Canadian Ambassador to the United States between 2005 and 2006 and current Deputee Chairman of Toronto-Dominion Bank; served on Carlyle’s Canadian advisory board.

* Mack McLarty, Carlyle Group Senior Advisor (from 2003), White House Chief of Staff to President Bill Clinton from 1993 to 1994.

* Randal K. Quarles, former Under Secretary of the U.S. Treasury under President George W. Bush, now a Carlyle managing director

Europe

* John Major, former British Prime Minister, Chairman, Carlyle Europe from 2002 until 2005

Asia

* Anand Panyarachun, former Prime Minister of Thailand (twice), former member of the Carlyle Asia Advisory Board until the board was disbanded in 2004

* Fidel V. Ramos, former president of the Philippines, Carlyle Asia Advisor Board Member until the board was disbanded in 2004

* Peter Chung, former associate at Carlyle Group Korea, who resigned in 2001 after 2 weeks on the job after his infamous email scandal

* Thaksin Shinawatra, former Prime Minister of Thailand (twice), former member of the Carlyle Asia Advisory Board until 2001 when he resigned upon being elected Prime Minister. [36]

Media

* Norman Pearlstine – editor-in-chief of Time magazine from (1995-2005), senior advisor telecommunications and media group 2006-

The “clotting” of America into a small group of controlling corporations headed by a very select, very powerful group of men is alarming and frightening. When “Carlyle” and “”Haliburton” and their like continually appear at the root of our government’s activties it is cause for alarm. We are in the process of subcontracting our government to private corporations and all the while we are being convinced that any objection to this process should be considered subversive or, in the new parlance, “socialism.” It’s time the people of this country developed the courage to face the truth about the corporate takeover of our Constitution. The Carlyle Group is the largest “private investor” firm in the world. Does anyone see the handwriting on the wall? We just bailed out GM and now the Carlyle Group will have one of its directors as its CEO.

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G.M. Chief Stepping Down After Report of Strong Quarter
By BILL VLASIC
Published: August 12, 2010

DETROIT — In a surprise development, General Motors’ chairman and chief executive, Edward E. Whitacre Jr., announced Thursday that he would step down as chief executive on Sept. 1 and be succeeded by Daniel F. Akerson, a G.M. board member and a managing director of the Carlyle Group. G.M.’s chief executive, Edward E. Whitacre Jr., has said the automaker is eager to separate itself from government ownership. Mr. Whitacre, 68, said he would stay on as chairman until year end, when Mr. Akerson would assume that role as well.

“I believe we’ve accomplished what we set out to do,” Mr. Whitacre said. “We’re going to have a smooth seamless transition here.”

Mr. Akerman, 61, will become the fourth chief executive at the nation’s largest automaker in less than two years. Rick Wagoner, who had held the chief executive job since 2000 and the chairman’s position since 2003, was asked to resign in March 2009 by President Obama’s automotive task force. He was followed by another long-time G.M. executive, Fritz Henderson, who led the company through its bankruptcy restructuring but was then replaced in November by Mr. Whitacre.

The announcement came shortly after General Motors reported that it earned $1.3 billion in the second quarter and cited sustained progress in rebuilding operations after emerging from its government-sponsored bankruptcy last year.

Mr. Whitacre, the retired chief of AT&T, had previously expressed a desire to leave once G.M. stabilized, but the timing of his announcement was unexpected, as was the choice of Mr. Akerson, a former chairman of Nextel Communications, as his successor.

Mr. Akerson said on a conference call that he did not anticipate major changes in strategy when he takes over. “We share a common vision for the goals and objectives of this company,” he said.

He is currently a managing director at the Carlyle Group, the massive private equity firm, where he is a senior executive of its buyout business. Before joining Carlyle, Mr. Akerson was a long-time telecommunications executive, including as the chief financial officer at MCI and as the chairman and chief executive of XO Communications, where he supervised a turnaround of the company.

“We still have important work ahead of us,” Mr. Akerson said, “but I am confident that we are building the foundation for G.M.’s long-term success.”

The quarterly profit reported on Thursday marked G.M.’s strongest financial performance since 2004, and set the stage for the automaker to file for an initial public offering, possible as soon as Friday. It was G.M.’s second consecutive quarterly profit.

Read the story.

G.M. Chief Stepping Down After Report of Strong Quarter

DETROIT — In a surprise development, General Motors’ chairman and chief executive, Edward E. Whitacre Jr., announced Thursday that he would step down as chief executive on Sept. 1 and be succeeded by Daniel F. Akerson, a G.M. board member and a managing director of the Carlyle Group.

 

Jeff Kowalsky/Bloomberg News

G.M.’s chief executive, Edward E. Whitacre Jr., has said the automaker is eager to separate itself from government ownership.

Multimedia

The Takeaway: Nick Bunkley on G.M. Earnings

Readers’ Comments

Mr. Whitacre, 68, said he would stay on as chairman until year end, when Mr. Akerson would assume that role as well.

“I believe we’ve accomplished what we set out to do,” Mr. Whitacre said. “We’re going to have a smooth seamless transition here.”

Mr. Akerman, 61, will become the fourth chief executive at the nation’s largest automaker in less than two years. Rick Wagoner, who had held the chief executive job since 2000 and the chairman’s position since 2003, was asked to resign in March 2009 by President Obama’s automotive task force. He was followed by another long-time G.M. executive, Fritz Henderson, who led the company through its bankruptcy restructuring but was then replaced in November by Mr. Whitacre.

The announcement came shortly after General Motors reported that it earned $1.3 billion in the second quarter and cited sustained progress in rebuilding operations after emerging from its government-sponsored bankruptcy last year.

Mr. Whitacre, the retired chief of AT&T, had previously expressed a desire to leave once G.M. stabilized, but the timing of his announcement was unexpected, as was the choice of Mr. Akerson, a former chairman of Nextel Communications, as his successor.

Mr. Akerson said on a conference call that he did not anticipate major changes in strategy when he takes over. “We share a common vision for the goals and objectives of this company,” he said.

He is currently a managing director at the Carlyle Group, the massive private equity firm, where he is a senior executive of its buyout business. Before joining Carlyle, Mr. Akerson was a long-time telecommunications executive, including as the chief financial officer at MCI and as the chairman and chief executive of XO Communications, where he supervised a turnaround of the company.

“We still have important work ahead of us,” Mr. Akerson said, “but I am confident that we are building the foundation for G.M.’s long-term success.”

The quarterly profit reported on Thursday marked G.M.’s strongest financial performance since 2004, and set the stage for the automaker to file for an initial public offering, possible as soon as Friday. It was G.M.’s second consecutive quarterly profit.

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