White House: General Motors to File for Bankruptcy

[cal04]

http://www.nytimes.com/aponline/2009/05/31/business/AP-US-Automakers.html

General Motors, the humbled auto giant that has been part of American life for more than 100 years, will file for bankruptcy protection on Monday in a deal that will give taxpayers a 60 percent ownership stake and expand the government's reach into big business.

Underscoring the government's extraordinary role, President Barack Obama planned to announce his support for GM's restructuring strategy at a midday appearance at the White House, much as he did in April when Chrysler sought court protection.

GM president and CEO Fritz Henderson planned to hold a press conference in New York immediately following Obama's announcement.

Administration officials said late Sunday the federal government would pump $30 billion dollars into GM as it makes its way through bankruptcy court. That's besides the $20 billion in taxpayers' money that the Treasury already lent to the automaker.

[MercutioATC]

1. WOOHOOOOO!!! We own 60%!!

...of nothing.

[FrenchieCat]

3. What was it you were proposing?

To save GM?

[MercutioATC]

4. No, to let it sink or swim on its own.

...without investing billions in a white elephant.

[dkf]

2. So we think that putting $30 billion more makes it a viable company?

Wasn't that the criteria?