TATA:

GM's Shares Tumble on Rising Cash Concerns (JOHN D. STOLL and SHARON TERLEP, 11/10/08, Wall Street Journal)

General Motors Corp. stock fell to its lowest level since 1946 as concern intensified that the auto maker could run out of cash and be forced to file for bankruptcy protection.

The stock's decline came as several analysts issued dire reports about GM and the company acknowledged in a government filing it could be at risk of violating the terms of some of its debt if it doesn't steady its deteriorating finances by year's end.

A violation of the debt covenants, GM said in the filing late Friday, would give lenders the right to demand repayment of $6 billion, a sum that potentially could cripple the car maker's ability to stay in business.

GM and sympathetic lawmakers boosted their calls Monday for the federal government to bail out the company. In return for aid, lawmakers in Congress have suggested the government could seek to take a stake in the company, limit executive compensation and require GM to speed the introduction of fuel-efficient vehicles

Why would we want an ownership stake? Developed nations don't manufacture.

Posted by Orrin Judd at November 10, 2008 10:11 PM