Are the folks at General Motors guilty of a double-standard, or hypocrisy, or possibly even an ethical breach, for the very different ways it’s behaving as a lender and a borrower in the mortgage mess? They’re at least guilty of not doing unto others as they would have done unto them, but would you behave any different?
- Lots of people who can’t pay owe money to ResCap, a mortgage subsidiary of GMAC.
- GM opposes legislation that would give people the right to ask a judge to reduce the amount they owe.
- ResCap will, sometimes, reduce the interest rate.
- ResCap also owes lots of money that it doesn’t have.
- They’re demanding that their creditors reduce the amount they owe.
Floyd Norris wrote a bit about GM having it both ways in his New York Times column last week, he never came down on it.
So is GM guilty of anything unethical here? No. It’s a double-standard, sure, but that’s because these are apples and oranges. They’re just shooting for the stronger position on each side. If not, you get bankruptcy.
Do unto others as you would have done to you? Yes, but that’s not the right concept here.
Hypocrisy? A little bit, but again, they’re just trying to get the best hand, and that’s a different hand depending on what side of the table you’re sitting on.
You’re calling the shots at GM? Is there another way to behave? Leave your thoughts in the comments section.
