Roberto Zerbino, left, a sales and leasing consultant at the Williamson Cadillac dealership in Miami, watches through a window into the customer lounge as President Barack Obama speaks to the nation about General Motors Corp. on tv. The president said he hopes GM would emerge quickly from bankruptcy court, and pledged up to $30 billion in additional federal assistance to help it get on its feet.(AP Photo/Wilfredo Lee)
GM went from boom to bust and today filed bankruptcy in a federal court in New York City. The ailing automaker will restructure and emerge from chapter 11 leaner and hopefully more competitive. At this point the American people are a 60% stakeholder and that concerns many people who don’t think the U.S. government should have any stewardship in a private company. Hopefully GM will soon become a viable and profitable auto company again and the 60% stake the U.S. government holds is sold to public and private investors.
Graphic shows equity stakes for General Motors
A customer looks at a new car in a GM showroom after the company announced that it had filed for bankrutcy protection. President Barack Obama’s gamble in ushering iconic US automaker General Motors into bankruptcy restructuring comes with political risks, management uncertainty and potential conflicts of interest.(AFP/Don Emmert)
General Motors CEO Fritz Henderson arrives at a press conference following GM’s bankruptcy filing in New York, June 1, 2009. General Motors Corp filed for bankruptcy on Monday, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership. REUTERS/Shannon Stapleton (UNITED STATES TRANSPORT BUSINESS POLITICS IMAGES OF THE DAY)