June 2. 2009

Video: Ripple Effect of GM Bankruptcy WXII12.com

Speculators believe the bankruptcy filing of General Motors this week, shall pose many problems for President Barack Obama, with the U.S. government assuming such a large financial stake in the company.

Obama may find it tough not to meddle in GM affairs

Tue Jun 2, 2009 11:25am EDT - WASHINGTON/CHICAGO (Reuters) - U.S. President Barack Obama may find it tough keeping a pledge not to meddle in the management of General Motors Corp once the government takes majority ownership of the giant automaker.

The White House has put a priority on encouraging environmentally friendly technology. It could be tempted to weigh in on issues such as the mix of vehicles.

And lawmakers -- some of whom already have spoken out against a GM proposal to shift some production overseas -- may insist on a voice on everything from the location of plant closures to the pay scales of top executives.

"We're already seeing them force out the CEO, restructure the board and talking about the right kind of cars for them to build," said Douglas Holtz-Eakin, who was a top policy aide to former Republican presidential candidate Senator John McCain...

http://www.reuters.com