Americans have a love/hate relationship with corporate capitalism. According to a study by Harris Interactive, we appreciate good leadership, but cast the evil eye on companies that received the biggest bite of government bailout funds.
In fact, nine of the 10 most disliked companies cited in the study received the biggest bailouts. Fannie Mac and Freddie Mac alone received $70 billion of the total $180 billion dispersed by the Federal Treasury, making them the third- and first-worst rated companies, respectively.
The companies with the best reputations, including Amazon.com, Google and Intel, are known as much for their products as their first-class management.
Here's a rather cynical look (OK, very cynical look) at the 10 most-hated companies on the list.
10. Delta Airlines Delta Airlines is the only company in the top (or bottom) 10 that didn't receive government bailout funds. They are, however, the only airline on the list to post a You Tube viral video on airline safety. Flight attendant Deltalina's high cheekbones have drawn more than 1.6 million hits in 15 months. Go figure.
9. Bank of America The largest bank holding company in the U.S. received $45 billion in government bailout funds, the fifth largest amount received by any entity. Members of the U.S. House of Representatives have claimed the bank misused the bailout money, citing the bank's refusal of loan applications from small-business owners, as well as stiffer terms on members' credit cards.
8. JP Morgan Chase Claims surfaced in April that the financial-services firm was instructing homeowners to stop making mortgage payments so they could qualify for loan modifications. Morgan Chase then repossessed their homes when they followed the bank's advice. (The case is pending in Federal Court.) What an excellent use of their $25 billion bailout. The bank may just be following the example of founder John Pierpont Morgan, who had a knack for investing in failures, like the Titanic and a never-built subway system designed to compete with the London Underground.
7. General Motors GM ranked as the world's second-largest automaker in 2008. One year later, the Detroit-based company filed for Chapter 11 bankruptcy. Such a grave fall from grace earned the automaker $50.7 billion in government bailout money, the third-most amount of funds received by any company. While the terms of the deal required CEO Rick Wagoner step aside, the executive received unemployment benefits valued at more than $10 million. Meanwhile, former auto workers are running out of options and unemployment checks.
6. Chrysler Poor planning and $10.76 billion in bailout funds earned Chrysler the title of sixth most hated company. The automaker also chose poorly when it came to affairs of the heart. After a joyous merging with Daimler AG in 1998, the German automaker dumped Chrysler after a nine-year union. Two years after the tearful break up, Chrysler filed for Chapter 11 bankruptcy protection and hooked up with Italy's Fiat. The bailout billions no doubt helped the automaker get over a broken heart.
5. Goldman Sachs Goldman Sachs released its 2009 annual report this month, revealing it made net revenues of $45.17 billion and paid bonuses of over $16 billion to employees. In its shareholder letter, Goldman says it repaid TARP money, but didn't mention the massive new taxpayer subsidies it continues to enjoy. Yet due to the influence of highly placed Goldman Sachs former officers, Goldman received -- and continues to receive -- enormous assistance from taxpayers, including $10 billion in government bailout funds.
4. Citigroup The banking behemoth was happy as a clam in 1998; forming one of the world's largest mergers in history with financial conglomerate Travelers Group. Ten years later, Citigroup suffered huge losses and received $45 billion in TARP funds. Does this have anything to do with Citigroup being the 16th largest political campaign contributor, donating fairly evenly between Democrats and Republicans.
3. Fannie Mae If you've taken out a mortgage, you've likely heard of Fannie Mae and Freddie Mac. The Federal National Mortgage Association (FNMA) is known by the friendly nickname Fannie Mae, but Americans feel less than friendly towards this financial juggernaut. Fannie's mission in life is to purchase and securitize mortgages, thus ensuring home-buying funds are readily available. By lending money to borrowers with poor credit, Fannie Mae helped create the subprime mortgage crisis of 2007, when home foreclosures became common and property prices went into the tank. And that, children, is why Fannie Mac received $75.2 billion in government bail-out funds (the most received) while earning third place as Most Hated Company.
2. AIG The American International Group is commonly known as the insurance corporation that was too big to fail. After suffering a "liquidity crisis" in 2008, AIG's credit ratings plummeted. Naturally, the Federal Reserve Bank extended $85 billion in credit to help the company meet increasing obligations. AIG originally was set to receive $195 for its financial-products division, but agreed to a $20 million reduction before granting more than $100 million in employee bonuses. AIG ended up receiving the second-highest amount in bailout funds while earning the great displeasure of Americans.
1. Freddie Mac Not only did Freddie earn "Most Hated Company in America" status this year, but the Harris Interactive Reputation Score gave it a 38.94, the lowest recorded score since Enron's 30.05 in 2005. Part of this enmity is owed to financial wizard Warren Buffet's denunciation in 2008. At the time, Freddie and Fannie owned or guaranteed about half of the $12 trillion mortgage market. As a result of Buffet's statement, Freddie received the lowest investment grade possible. Naturally, the government granted Freddie $50.7 billion in bailout funds, the fourth-highest amount received.
Humph. Bank of America should've been at the top of the list in my opinion. They aren't anything but a bunch of blood-suckers and I can't WAIT until this mortgage crisis takes a turn for the better so I can transfer my loan to a credit union. The best business move anyone can take is to remove their money from this establishment before they steal it from you. They are doing some sneaky-type shit up in that place and I would advise anyone to stay away from them. They're bad news for real!
I stopped flying Delta Airlines after the first time. Something about having to walk out on the runway to the plane disturbed me, so it was a wrap after that trip.
Goldman Sachs just hit the news last week, so I can see why they're up here.
As far as Fannie Mae, Freddie Mac, and AIG are concerned.....I have absolutely no words for their trifling asses.
Sorry for my rant, but it truly amazes me how these big companies get bailed out and continue to take, take, take. Everyone is out to screw the next person over and it just aggravates me to no end. You work hard everyday only for some big wig to come and try to pull the rug from underneath you. I am really beginning to believe what my Mama (and others) have been saying for the past year. We are in the last days. Everything is just out of control. There's no common ground anywhere anymore.