Geithner: Bankruptcy Still An Option For GM

By: Michelle Levi
Topics: In The News

Treasury Secretary Timothy Geithner said today that General Motors and the American auto industry will require "very substantial restructuring," and that the Obama administration is prepared to help make that process work.

(CBS)

"We're prepared to explore all options to make that possible, but our test is, what's going to work? What's going to allow them to emerge from this strong enough so they can survive without assistance from the government on an ongoing basis?" Geithner (left) said on CBS News' Face The Nation.

One option he did not rule out is a controlled bankruptcy for GM.

"General Motors is going to be part of this country's future," he said, reiterating President Obama's call for a strong American auto industry.

"Well, the new man at GM who took Rick Wagoner's place said this morning on NBC that some sort of a managed bankruptcy may very well be the best alternative," said host Bob Schieffer. "I take it you agree with that?"

"Well, there's a range of options that could work," Geithner responded. "Again, our test is, what's going to work? We're open to what's going to work. We're prepared to be helpful and to help that.

"These guys have made some progress in putting together a restructuring plan, but they're not there yet."

To watch Timothy Geithner discuss economic recovery and the auto industry click on the video player below.

More from Face The Nation (4.05.09):

Geithner: Recovery In "Fits And Starts"

Read The Complete Transcript> (pdf)

To watch CBS News chief foreign correspondent Lara Logan and Washington Post reporter Perry Bacon discuss the state of world relations click on the video player below.

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by thetireguy1 April 12, 2009 8:25 AM EDT: Schools should push out more doctors and let doctors advertise to drive down prices and stop the lawyers who
will sue any doctor for anything which drives doctors insurance premiums through the roof and make becoming a lawyer
as hard as becoming a doctor!
The lawyers remind me of the movie terminator, its easier
to build a terminator(lawyer) than a human(doctor)
Free doctors to practice healing and free of litigation!
The patient wants to smoke, drink, do drugs and then when
ill expects the doctor to cure him/her if not, they want to sue!
Give me a break!!!!!!!!!!!!Health care premiums are out of control; Reply to this comment


by sjc_1 April 6, 2009 2:16 PM EDT: Republicans are fronting for the big profitable health insurance companies. This was apparent in 1993 when Bob Dole opposed the national health care proposals. Out of more than $1000 billion per year in private health insurance premiums, insurance companies skim more than $100 billion in profits. They will not let that go without a fight.; Reply to this comment


by mattcat25 April 6, 2009 12:25 PM EDT: HealthCare is at the root of what has happened at General Motors. The Conservatives wish to crush the United Auto Workers Union to employ inexpensive workers either domestically or foreign.

HealthCare (amongst other reasons) is costing the Corporate Giant in profits and competition.
Republicans desire to remove the responsibility of HealthCare for American Workers provided by Employers. The Costs of HealthCare driving up by Republican Special interest Insurance Companies and Pharmaceuticals are at the core of the HealthCare Crises facing every American.

Something must be done, and action must be taken in respect to HealthCare or, what you see happening at GM will soon be happing at your job.; Reply to this comment


by paofpa April 6, 2009 9:39 AM EDT: GM is doing what is right for GM:
And that might not be what is right for the US but its board and the stockholders. If the current stockholders are left out and the company will in pieces it will not be able to run and might have little value. Only a smaller unit will run. But the bondholder are doing what is right for themselves; so is the union; management, suppliers and Congress. Everyone needs to be at the table and roll dice. If no one can accept the dice; it?s time for the US to print a new version of GM paper and say to all; this is now what you own; including the US tax payer; then walk away. It?s the best use of taxpayer money and the only way the US should support GM.; Reply to this comment


by craigh41 April 6, 2009 8:11 AM EDT: It only took the government 5 months to figure out what the public knew back at the time of the first bailout - the changes necessary can NEVER be negotiated, they must be mandated which is exactly what the bankruptcy laws allow for. Had the government acted responsibly back in late 2008 the auto industry would be well on its way to recovery by now - but no one had the guts to do the RIGHT thing - they wanted to do the POLITICAL thing which resulted in the expenditure of bailout funds without ANY corrective action.; Reply to this comment


by speakinup April 6, 2009 12:23 AM EDT: I'm somewhat surprised that Mr Geithner didn't speak up about GM option of just cheating on the taxes.

Worked for him, right ?; Reply to this comment


by IlovetheUSA April 5, 2009 11:07 PM EDT: Why don't we take all the unsold vehicles in the United States and load them on all the empty planes that are now not being flown due to the economy slowdown and drop them on North Korea, I believe this will help two desperate situations, 1. No more Nuclear threat from North Korea and 2. It would put people back to work to replace the cars that we stopped the Nuclear threat with. just a thought!!!!!; Reply to this comment


by bumpedoff1 April 5, 2009 9:02 PM EDT: How about they bankrupt fannie and freddie and AIG; Reply to this comment


by grabandgo April 5, 2009 8:48 PM EDT: So why did we give them all that money?; Reply to this comment


by hypnotoad72 April 5, 2009 7:00 PM EDT: Get rid of the idiot management that can't be bothered to see what people are screaming about wanting: Affordable cars with great MPG. Not more SUV crap.

Don't blame the workers that do the job right. Even Henry Ford knew that.; Reply to this comment