Posted on 03/30/2009 8:57:02 AM PDT by TigerLikesRooster
Global markets dive as Obama rejects carmakers' plea
Christine Seib in New York
Global stock markets dived today after the White House denied General Motors (GM) and Chrysler multi-billion dollar bailouts and threatened to push the ailing carmakers into bankruptcy if they do not implement aggressive restructuring plans.
The Obama Administration effectively seized control of the companies – ousting General Motors’ chairman and chief executive and pushed Chrysler toward a merger – after finding that the carmakers’ own restructuring plans “did not establish a credible path to viability”.
The Dow Jones industrial average tumbled 215.37 points to 7,560.81 within minutes of opening while in London, the FTSE 100 index of leading companies fell 104.59 points to 3,794.26. In Germany, the DAX declined 145.88 points and in France, the CAC fell 89 points to 4,057.67.
In a document released at midnight last night, the White House set out its key findings on the two companies after more than a month of intensive talks between the President's auto taskforce, GM and Chrysler's managements and other stakeholders.
GM last December received a $13.4 billion bailout and had asked for a further $16.4 billion, while Chrysler got $4 billion and wanted up to $6 billion more.
(Excerpt) Read more at business.timesonline.co.uk ...
I agree...but bankruptcy was what should have happened four months ago. If not before.
Rick Wagoner will take home a financial package worth an estimated $23 million after he resigned as GM CEO, AP reports.
Tiger- are these rascals shorting the market?
This GM deal stinks.
pointsal
This stinks too! $23-million! Boy, do I feel underfunded.
Too late for that.
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