Posted by Steven Russolillo
on March 30, 2009
, Credit Crisis
Now that GM CEO Rick Wagoner has been forced out, where else will the hammer fall? Or will it fall at all? After all, much more government money’s been spent bailing out banks than auto makers. Why is Wagoner the first chief being replaced? Will other heads roll as well?
“This inconsistency from the new administration is very disappointing,” FusionIQ CEO Barry Ritholtz writes on his blog.
Posted by John Shipman
on March 30, 2009
US stocks angled toward a sharp early pullback, judging by premarket futures. Equities have had a nice run, but grim realities — automaker troubles, questions of whether banks will need more capital — are far from resolved and remain a deep-seated bother.
GM shares off 20% premarket at $2.88 after CEO Wagoner steps aside and bankruptcy fears mount.
Full menu of economic data this week, including measures on manufacturing, pending home sales, home prices, auto sales and March employment.
S&P futures down 18; Dow futures off 168; 10-yr higher, yield at 2.72%.
(Photo: Paul Vigna)
Posted by Paul Vigna
on March 29, 2009
An American Revolution.
So it looks like General Motors, despite its inability to produce a credible plan by the end of this month showing it can restore itself to a viable, profitable company - a key condition for continued access to the public treasury – is going to get more bailout money regardless. President Obama will announce that tomorrow. But sans a plan, the company had to give up something, and it this case it’s CEO Rick Wagoner, who reportedly is stepping down.
“The timing of Wagoner’s departure is clearly symbolic. It’s meant to signal the nation that it’s OK throw bailout billions GM’s way because it’s a new day,” Robert Farago writes at The Truth About Cars.