As I'm posting this Tuesday night, Bloomberg reports that President Obama has concluded that a prepackaged bankruptcy is the best option for General Motors and Chrysler. This item will likely remain very fluid overnight, so let's keep an eye on that.
Meanwhile, today was day two of GM's post-Rick Wagoner era.
Let's see what we come up with when sifting through all the stories and reports.
Jerry Flint of Forbes writes why Wagoner had to go. Primarily due to GM management's performance during this latest crisis. Flint used to think a GM bankruptcy would never happen, same as yours truly. He's been covering the auto industry since 1959, and has gotten lots more right than wrong over that time. I was obviously wrong, but haven't got nearly the credits on the good side of the ledger as Mr. Flint.
Paul Ingrassia pens an op-ed in The Wall Street Journal, in which he agrees that Wagoner had to go. He used to be Dow Jones' Detroit bureau chief and has written thoughtful columns in the Journal over the past several years on GM and the Detroit Big Three. He credits President Obama with showing more leadership on GM in one day than Mr. Wagoner and management had in years.
Breakingviews.com agrees Wagoner needed to go, but thinks GM needs much more radical surgery than simply changing chief executives. Apparently the editors won't be disappointed.
The Lex Column in the Financial Times credits the pro-union White House showing backbone.
In closing, I'll point out that many of my conservative friends are alarmed at the White House getting rid of a CEO. I'm no expert on this, and as I said yesterday, I've been swamped with non-blogging stuff and haven't spent time on this subject.
But if you're a company and you're relying on the government for your survival, then the government gets to pull some strings. This most likely is another reason why the whole bailout mania is harmful -- for auto companies, banks, brokerages and all other entities.