(CBS/AP) General Motors, the humbled auto giant that has been part of American life for more than 100 years, will file for bankruptcy protection on Monday in a deal that will give taxpayers a 60 percent ownership stake and expand the government's reach into big business.
Underscoring the government's extraordinary role, President Barack Obama planned to announce his support for GM's restructuring strategy at a midday appearance at the White House, much as he did in April when Chrysler sought court protection.
GM president and CEO Fritz Henderson planned to hold a press conference in New York immediately following Obama's announcement.
Administration officials said late Sunday the federal government would pump $30 billion dollars into GM as it makes its way through bankruptcy court. That's besides the $20 billion in taxpayers' money that the Treasury already lent to the automaker.
The money would come from what remains of the $700 billion rescue fund for the financial sector.
General Motors will file for bankruptcy protection in federal court in Manhattan sometime shortly after 8 a.m. EDT. For the foreseeable future, General Motors will not be a publicly-held company. As of 9:30 a.m., GM stock will essentially be worthless, reports CBS News business producer Guy Campanile. - CBS News Story
See Also ABC News Story
What is it with Obama spending Billions upon Billions of taxpayer dollars to keep bankrupt companies alive? He should quit his spending and look at the books of the American People and see that we are on the verge of Bankruptcy ourselves. We are no longer spending taxpayer money, we are spending future taxpayers money. We are so far out of money, the loans this President is taking out will be left to our grandkids.
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