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St. Louis Business & Technology News
"When you think Saint Louis, think Saint Louis Front Page," a weekly publication covering the news and events in the greater St. Louis area. 
How To Reach Us:St. Louis Front Page P.O. Box 1354 St. Louis, MO 63188 Voice: 314-771-0200 Fax: 314-771-0300 To submit news, contact: editor@slfp.com To advertise, contact: advertising@slfp.com |
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ST. LOUIS, MO (PRNewswire-USNewswire), November 23, 2008 - Some of the Midwest's top banking executives spoke out Wednesday, Nov. 19 about the country's economic crisis, the proposed federal bailout of Detroit automakers and the strength of their own industry. The special panel discussion - "Can The Economy Be Saved?" - was hosted by the School of Business and Technology at Webster University in St. Louis, Mo. Participating panelists included Tom Chulick, chairman and chief executive officer, UMB Bank; Dwight Erdbruegger, executive vice president, Commerce Bank; Allan Ivie, president and chief operating officer, The PrivateBank; Sally Roth, president and area executive, Regions Bank; Julie Stackhouse, senior vice president, The Federal Reserve Bank; and Robert Witterschein, president and chief executive officer, Southwest Bank. During the hourlong discussion, which was facilitated by Dr. Benjamin Akande, dean of Webster's business school, the panelists spoke candidly about the lack of confidence in the financial system and the fact that confidence cannot be legislated. They also agreed that bailing out the nation's automakers was not a permanent solution to that industry's problems. "There has to be an acknowledgment that the business model isn't working," says Roth, of Regions Bank. "This model needs to be fixed." Commerce Bank's Erdbruegger agreed and reminded the standing-room-only audience of the government bailout of Chrysler in 1979. "Chrysler was successful for 30 years, but now they're back again," he said, "so a government bailout isn't the best solution." The panelists said their banks are all well positioned and financially capable to weather the current economic "perfect storm." "Promoting frank discussion about issues that affect everyone in the community is exactly what this panel presentation is about," said Akande. "Webster University is here to facilitate not only for our students, faculty and alumni, but also for the community at large by providing access to those people who can answer the most important questions of our time." "Can The Economy Be Saved?" was part of the Maritz Success to Significance Speakers Series at Webster University. Its intent is to create a forum where global corporate leaders and opinion makers can share their leadership journey and experience while speaking to the challenges and opportunities evident in their organizations. A recording of the program will be available online at www.webster.edu/sbt. The full panel discussion will also be broadcast in its entirety on Dec. 29, 2008 and again on Jan. 2, 2009 on HEC-TV in St. Louis. Failure of U.S. Automakers Would Batter Economy ST. LOUIS, MO (PRNewswire-USNewswire), November 23, 2008 - University of Dayton automotive historian and expert John Heitmann has mixed feelings about a government bailout of the U.S. auto industry, but he said the whole issue might have been avoided had the automakers just paid attention to the writing on the wall. "We saw how the Japanese companies changed their business practices and were able to stay competitive," Heitmann said, referring to David Halberstam's well-known 1986 book on the auto industry, The Reckoning. "We had about 25 years or so to try to deal with this, and we didn't. Now it looks like the reckoning is coming." The leaders of General Motors, Ford and Chrysler are pleading with Congress for a $25 billion loan as a bailout to the auto industry to prevent bankruptcy. Heitmann called the bailout a "Band-Aid" that would buy the automakers time, but it would likely not be enough. "My heart says, 'yes,' to the loan because of the phenomenal ripple effect throughout the economy if Congress doesn't do it, especially in the Midwest," Heitmann said about the bailout. "But my head says, 'no,' because I don't have a lot of faith the government can intervene and fix this without much more money going in to what would be a bottomless pit, particularly with the hubris of the Big 3 leadership over the past 50 years." Heitmann is an expert in the history of the American automobile and has been interviewed by ABC World News and The Associated Press for his perspective on the pending closure of GM's Moraine truck assembly plant. His latest book, The Automobile and American Life, which explores how the automobile transformed business, life on the farm and in the city, the nature and organization of work, leisure time and the arts, is expected to be published in 2009. He will be interviewed by Chris Paine, maker of the documentary Who Killed the Electric Car?, for the documentary's 2009 sequel, Revenge of the Electric Car. Heitmann compares the current crisis for the Big 3 to the history of the British auto industry, which after World War II was second in size to that of the United States. When the industry started failing in the 1960s, the government tried "many interesting strategies," but ultimately failed to save it. The U.S. automakers are simply burdened by labor costs, Heitmann said. The companies agreed to too many concessions for labor considering the global competition of the industry. "The proposed loan would just be a Band-Aid," Heitmann said. "All they'd be doing is buying time, perhaps through 2010 when the union contract ends or for the release of the Chevy Volt and other planned hybrid cars." If the Big 3 filed for bankruptcy, they would be able to dramatically change their labor contracts and "cradle-to-grave" legacy costs and perhaps emerge as far more viable and competitive. But if bankruptcy resulted in foreign automakers taking over some domestic operations -- as they did when the British industry failed -- jobs would likely return, but America's long-term interests might suffer. "We'd be starting to see America more like a colonial economy, no longer the primary owners of what we make, and we'd see more of the wealth go overseas," he said.  
The Saint Louis Front Page is owned and maintained by the Moore Design Group for the sole purpose of disseminating news and information about the Metropolitan Saint Louis area. Text or graphics may not be copied, rewritten or distributed in any manner whatsoever without written permission. For more information, contact editor@slfp.com All rights reserved world wide © 1996 - 2008 Moore Design Group. |
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