Initiating what seems like a game of chicken with Congress, General Motors
Along with Ford
For a moment, the Lehman Brothers
That display of backbone lasted all of about a day, when the government decided it wanted to be in the insurance business and seized American International Group
GM will use the money from its credit facility to retire some $750 million in debt coming due in October, as well as to assist parts supplier Delphi with its $1.2 billion reorganization. Right before the credit markets turned topsy-turvy, GM had agreed to help Delphi get its act together and emerge from bankruptcy protection. Both may now engage in a drag race to the finish line of solvency.
Back in June, GM had said that drawing down its credit line might send the wrong message to investors. Now that it is tapping every last bit of credit left to its name, it may also be trying to send Congress a not-so-subtle message: When you're done handing out the big bucks to banks, don't forget the pittance the automakers are asking for. General Motors might also have just set itself on a collision course with oblivion.