The U.S. Treasury Department appointed 10 of GM's 13 board members. Two of those slots are occupied by the Carlyle Group, a testimony to the private equity underwriter's buyout skills and high level political connections. The PEU has a track record of reading government tea leaves and making a mint off the federal taxpayer.
Kent Kresa served as interim Chairman of General Motors. After leaving Northrup Grumman, Mr. Kresa served as Senior Advisor to the Carlyle Group.What will this pair do for Carlyle's substantial automotive portfolio? Carlyle just added Metaldyne to their automotive stable. How will GM steer business to the politically connected PEU? And how will Rahm Emanuel help? Surely, GM came up in the White House Chief of Staff's dinner meeting with Carlyle co-founder David Rubenstein.
Also named to the GM board is Daniel Akerson, Managing Director of the Carlyle Group.