GM FILES BANKRUPTCY

POSTED: Monday, June 1, 2009 - 9:25am

UPDATED: Wednesday, February 17, 2010 - 3:24pm

General Motors files for bankruptcy...

General Motors has filed for bankruptcy.

It is among the biggest in history and for now, the U.S. government will be a majority owner.

Treasury Secretary Timothy Geithner spoke about the bankruptcy at an event today in China.

He says the White House is committed to getting GM back up and running.

After cutting huge deals with its bondholders, its workers, and the government, GM is hoping to be emerge from Chapter 11 protection in 60 to 90 days.

Mr. Geithner said "we're very optimistic that we're going to have these firms emerge stronger, without government assistance going forward because they've undertaken very, very dramatic restructuring."

Mr. Geithner said "and our objective is to make sure we're limiting our involvement to the minimum necessary, and that we get out of those involvement as quickly as we can."

The price tag to taxpayers: roughly $50 billion.

GM is hoping to follow Chrysler's model of a quick in-and-out bankruptcy.

Chrysler could be out of bankruptcy as early as this week, about a month after filing, after a judge approved the sale of much of its assets to Italian automaker Fiat.

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