Obama Said to Conclude Bankruptcy Best Option for GM, Chrysler

[galileoreloaded]

Source: Bloomberg

March 31 (Bloomberg) -- President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said.

Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can’t form an alliance with Fiat SpA, said members of Congress who have been briefed on the subject and two other people familiar with the administration’s deliberations.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aUFsRbmQyiJU

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The "familiar with the matter" part sounds sketchy, but all in all, Bloomberg is usually right. (which sucks in this case)

[Thrill]

1. I think GMs books must be a mess

[amandabeech]

2. No, the Treasury's are. They can't account for where all the TARP money has gone.

On edit: The government is not required to hire and independent auditor to audit its books in satisfaction of GAAP and the SEC, including the SarBox regulations.

They are likely to no more less funny stuff on their books than the financial institutions which are notorious for off-balance sheet special investment vehicles, many of which contained toxic assets.

The government's books are so bad that they simply cannot be audited.

[Thrill]

3. Its the Federal Reserve that won't tell who they've given loans to. Geitner's site

http://financialstability.gov/impact/index.html shows where all his has gone

[harmonicon]

4. good thing we just gave them shitloads of money then

"Hey, Bob. May I borrow shitloads of money?"
"Sure, Randy - no questions asked!"
"Thanks, Bob!"
"Good on ya, Randy. Now go declare bankruptcy."

[TheWatcher]

5. Hmmmm, you accidentally chopped off the end of that headline there.

Here, let me fix it for you:

Obama Said to Conclude Bankruptcy Best Option for GM, Chrysler, but Banks, Wall Street, and various other Corrupt Entities to be Bailed Out Eternally at taxpayer's expense

There. All better now.

[Oregone]

6. Would that be better than nationalizing?

(or is that just off the table from considering?)