U.S. Govt. Rejects G.M.’s Call for Help – NYTimes.com
DETROIT — The Treasury Department has turned down a request by General Motors for up to $10 billion to help finance the automaker’s possible merger with Chrysler, according to people close to the discussions.
Instead of providing new assistance, the Treasury Department told G.M. on Friday, the Bush administration will now shift its focus to speeding up the $25 billion loan program for fuel-efficient vehicles approved by Congress in September and administered by the Energy Department.
Treasury officials were said to be reluctant to broaden the $700 billion financial rescue program to include industrial companies or to play a part in a G.M.-Chrysler merger that could cost tens of thousands of jobs.
Do not go gentle …
The US$62 trillion CDO /CDS hole may appear a little later.
In the meantime a small ‘disturbance’ in the manufacturing sector could set off a wavelets of closures, leading to a … GM’s troubles could affect Delphi, and some steel companies, which may affect other car companies, which may affect banks, which may affect the US$62 trillion CDS /CDO segment.
Which may affect you.