GM's Wagoner: White House Leery Of Forced Bankruptcy

By Cyra Master

The chief executive of General Motors today seconded the notion that the Obama administration is backing away from supporting a "structured bankruptcy" of GM and Chrysler, as it sees the rapid deterioration of the vast chain of parts and services companies that serve the U.S. auto companies.


Rick Wagoner, in Washington for meetings with task force officials, told reporters at a press conference that "the concerns about the supply chain have risen pretty rapidly recently," and that this is leading the Obama task force to take "a very broad view" to "make sure that anything they do doesn't fix one problem here and not there."


Wagoner's comments came one day after financier Steve Rattner, who is heading the Obama auto task force, said that "bankruptcy is not our goal nor a desirable outcome."


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http://www.theatlantic.com/business/archive/2009/03/gms-wagoner-white-house-leery-of-forced-bankruptcy/1612/