Stocks decline as hopes fade for immediate bailout Flip-flopping sentiment about the prospects for U.S. automakers battered stocks again Thursday as hopes rose then fell that lawmakers would soon put together an aid package for the companies. Stocks declined after a brief advance that came on hopes that Washington would agree to help Detroit's Big Three.
Democratic leaders in Congress delayed a vote on bailing out the auto industry until December and are asking the companies to present a plan to show how the $25 billion cash injection they have sought would be used. Stocks rose briefly Thursday after a bipartisan group of senators reached a compromise to funnel emergency loans to General Motors, Ford and Chrysler.
Banks and autos undermine U.S. stocksU.S. stocks were tumbling Wednesday afternoon, led by shares in U.S. banks and the big three automakers.
GM says board doesn't see bankruptcy as option General Motors Corp.'s board of directors does not consider bankruptcy protection a viable option to solve the company's financial troubles, but it has discussed Chapter 11 because it has a legal duty to do so, a spokesman said Saturday.
Century-old GM, an icon of American manufacturing, has been battered by a plunge in car sales as American consumers tighten their belts and shift away from the big moneymaking pickup trucks and SUVS that have long the staples of GM's lineup.
GM, which has slashed jobs and closed plants since early in the decade, has warned that it could run low on cash by the end of the year unless it gets a taxpayer-funded rescue from the government.
U.S. stocks fall to lowest in five-plus yearsU.S. stocks plunged to their lowest in 5A1 2 years on Wednesday as investors girded for a lengthy economic downturn and automotive executives predicted a far-reaching calamity without a government lifeline.
Bailout with a price: Chapter 11 bankruptcy Mention a corporate bailout in the nation's capital these days and chances are someone will offer a harsh condition to go along with it. Chapter 11 bankruptcy.
Lately, the term 'prepackaged bankruptcy' has been gaining currency in the halls of Congress as lawmakers struggle with pleas for help from the auto industry.
The idea, embraced by some Democrats and Republicans, would extend taxpayer help in exchange for a company undergoing an accelerated Chapter 11 reorganization. The arrangement could represent a model, or a deterrent, for any other strapped companies considering seeking government help.
