Bailout May Be a Bridge to Nowhere

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Sometimes, hard choices have to be forced. That is a beauty of bankruptcy court, where a judge can require investors, creditors, employees and management to reach difficult compromises.

The U.S. government has chosen a different route for General Motors and Chrysler, extending $17.4 billion in temporary assistance, or bridge loans. Washington hopes to coax agreements needed to restructure the companies.

While the aim of buffering the U.S. economy from auto-maker bankruptcies may be laudable, it could prove tough to achieve.

Read the full article at The Wall Street Journal

Date published: Nov 20, 2008

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