Rubin's resignation hints at sale of Ford Credit
Ford Motor may be taking a page from General Motors' restructuring playbook in considering ot sell off part of its Ford Credit financial unit. Both companies have seen the cost of capital for their financial subsidiaries rising as the automakers' credit status falls ever further into junk status.The resignation Friday of key Ford director Robert E. Rubin was the result of Rubin's position as a board member and chairman of the executive committee at Citigroup, which Rubin feared could raise the possibility of conflict of interest. Since this hasn't been an issue up to now, the move sparked speculation that Ford Credit was in play, particularly in view of Citigroup's recent expansion of its automotive financing portfolio and its role in GM's pending sale of a majority stake in its GMAC credit arm.
Rubin is the third director to leave Ford's board this year. He joined Ford's board in 2000, after serving as Secretary of the Treasury in the Clinton administration. Rubin is a 26-year veteran of Goldman Sachs & Co.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
DJ 3:55PM (8/28/2006)
Ford...the Growth Stock????
Had you purchased Ford stock one month ago, today you'd be enjoying a 35% gain on your investment. And that's not an annual return, that's simply one month. Not bad for company that so many assumed to be doomed!
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Lee Gibson 5:39PM (8/28/2006)
Well golly, DJ. Sounds like you've got yourself a heck of an investment plan there. Look for stocks that have had a lot of growth in the past month, and buy them, hoping that they'll keep doing the same thing.
Let me know how that works out for you, OK?
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Miyoshi 3:31AM (8/29/2006)
Say it ain't so Robert Rubin! Say it ain't so!
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Michael G 8:23AM (8/29/2006)
Monkey see, Monkey do!
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