April 1, 2009

Granholm calls for ‘tough love’ for banks

Michigan Gov. Jennifer Granholm said the federal government needed to take a tough love stance on banks equal to the federal response to the auto industry.

There cannot be a double standard, Granholm said after she signed an $873 million state spending package that will concentrate on road and bridge repair, the Detroit Free Press reported Wednesday.

We need to see something from the federal government that addresses our economic hurt here, she said, explaining the state shouldn't settle for retraining programs for displaced workers.

There has to be tough love with respect to Wall Street the same way there is tough love with respect to the manufacturing industry, she said.

The federal government took a tough stand with General Motors Corp. and Chrysler LLC this week, saying their financial viability plans needed to be reworked.

Granholm was to meet Wednesday with U.S. President Barack Obama's Director of Recovery for Auto Communities and Workers Ed Montgomery.