FD: If GM goes through bankruptcy, then the unions take a major hit. That will make the GOP happy, and it might make Obama a one term president. However, a lot can happen in four years... it has only been 64 days!
The Obama administration used the threat of withholding more bailout money to force out GM Chief Executive Rick Wagoner and administer harsh medicine to Chrysler, marking one of the most dramatic government interventions in private industry since the economic crisis began last year.
The administration's auto team announced the departure of Mr. Wagoner on Sunday.
In a summary of its findings, the task force added that it doesn't believe Chrysler is viable as a stand-alone company, and suggested that the best chance for success for both GM and Chrysler "may well require utilizing the bankruptcy code in a quick and surgical way."
The move also indicates that the Treasury Department intends to wade more deeply than most observers expected into the affairs of the country's largest and oldest car company.
After over a month of analysis, the administration's auto task force determined that neither company had put forward viable plans to restructure and survive.
The verdict was gloomier for Chrysler. The government said it would provide Chrysler with capital for 30 days to cut a workable arrangement with Fiat SpA, the Italian auto maker that has a tentative alliance with Chrysler.
http://online.wsj.com/article/SB123836090755767077.html#mod=djemalertNEWS
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