The auto industry is “necessary,” says an Obama advisor. After initially saying he was going to put one guy in charge of the auto industry’s restructuring, Barack Obama thanks a staff is necessary, an official says. The task force would be overseen by Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers. Tomorrow is GM and Chrysler’s deadline for submitting their company’s plans to restructure. source
General Motors could fold into a new company. The plan, which the Wall Street Journal reported about yesterday, would have the automaker file for Chapter 11 bankruptcy and reform as a new company. They’re under a lot of pressure to act right now – they got a massive bailout from the government and, along with Chrysler, have until Tuesday to show the government how they plan to restructure. source
If that means that there is going to be disappointment with the level of details until we get it right, I will live with that disappointment because it is better than the alternative.
Timothy Geithner • Treasury secretary, who shrugged off the negative reaction to his bailout plan, which he announced Tuesday. • source
This policy is just inadequate. The first quarter is just going to be grotesque for the banks – and then we’re going to have to have this discussion all over again.
Chris Whalen • A managing director at financial research provider Institutional Risk Analytics, on Treasury Secretary Timothy Geithner’s bailout plan, which proved to be highly unpopular on its announcement. • source
Our challenge is much greater today because the American people have lost faith in the leaders of our financial institutions, and are skeptical that their government has – to this point – used taxpayers’ money in ways that will benefit them.
Timothy F. Geithner • Treasury secretary, who will announce a bailout plan for the banks today. • source
Let’s face it, Larry, we are in a depression. If they didn’t do the bailout, you would be in depression No. 2 and maybe just as big as depression No. 1, so they really had to do something.
Donald Trump • talking to Larry King about the economy and the banks. Trump says that the executive salary caps are necessary and that the big problem is that banks aren’t loaning out their bailout money and instead are using it for other things. • source