Today's Papers: White House Might Push Bankruptcy on Automakers

The New York Times and Washington Post lead with the White House announcement that it's considering forcing an "orderly" bankruptcy of Chrysler and General Motors. In announcing that the administration was "very close" to reaching a decision on the automakers, the White House press secretary acknowledged that officials are considering a managed bankruptcy as an option. But both papers hear from administration officials that bankruptcy is unlikely and is seen more as a last resort option that would only become a reality if no agreement can be reached with the automakers. The Wall Street Journal leads its world-wide newsbox with word that President-elect Barack Obama will nominate Rep. Hilda Solis of California, a free-trade skeptic, as his labor secretary and Ron Kirk, a champion of free trade, as his trade representative. The picks illustrate how the Democratic Party is split in the battle over free trade.USA Today leads with a look at how mortgage rates have fallen to lows not seen since the 1960s. The average 30-year fixed-rate mortgage fell to 5.19 percent this week, the lowest it has been since Freddie Mac started to issue its weekly mortgage market survey in 1971. While the low rates don't appear to be motivating new buyers just yet, they have led to surge in refinancing, which tripled in the past month. Experts say homeowners should act now because rates aren't likely to get much lower. The Los Angeles Times leads locally and goes high with news that federal regulators have adopted sweeping new rules for the credit card industry. The rules, which take effect in July 2010, would forbid credit card companies from increasing interest rates on existing balances and require a 21-day grace period before late fees could be charged. Some worry that these new rules could lead banks to tighten credit during a recession, but consumer advocates insist more regulation is needed to address the unfair and deceptive practices that have become increasingly common in the industry.To continue reading, click here.