How Taxpayers Can Profit From the New GM

Warren confirms cuts to 25 top earners at 7 companies

(AP) - The Treasury Department today is expected to order seven companies that have not paid back last year's US government bailouts to halve their top executives' average compensation. The cuts apply to the 25 highest-paid executives at banks and other companies that received the most assistance, with salaries being slashed by as much as 90%. The move, reported last night, is "real," TARP overseer Elizabeth Warren confirmed to CBS this morning. More»

(NEWSER) - If General Motors goes into bankruptcy next Monday—as is widely expected—the US government will own 70% of the automaker, the New York Times reports. Under a plan that GM officials detailed today to union members, the UAW would take a 17.5% stake though its health care fund, with a potential for 2.5% more. Bondholders, who have more money at risk than the UAW, would get just 10% of GM. More»

Treasury pushes automaker toward Fiat deal or liquidation

(NEWSER) - The Obama administration has given a further $500 million to keep Chrysler afloat, but Washington signaled yesterday it increasingly believes Chrysler will not survive as an independent company. Treasury officials met yesterday with CEO Robert Nardelli, as well as the heads of the United Auto Workers and Italian automaker Fiat. If it fails to strike a deal with Fiat, Chrysler could file for bankruptcy or liquidation by next week. More»

Obama taps financier Rattner as lead in GM, Chrysler restructuring

(NEWSER) - Steven Rattner has been named chief adviser to the panel tasked with restructuring GM and Chrysler, Reuters reports. The financier was considered the frontrunner to be "car czar" before President Obama opted for a panel rather than a single chief. Rattner, who will leave the private equity firm he co-founded to take the position, is still expected to play a central role but without direct oversight. More»

Public taste turns away from big cars

(NEWSER) - GM will close four of its North American truck and SUV factories, the company announced today, as the public interest in gas-guzzlers wanes. The Hummer brand is also under “strategic review,” with all options on the table, "from a complete revamp of the product lineup to a partial or complete sale of the brand." The fully electric Chevy Volt, on the other hand, “is a go.” More»