Government Ready to Split GM in Two

Most papers continue to lead with the troubles facing General Motors and Chrysler. Yesterday, President Obama delivered what the New York Times describes as an "ultimatum" to the troubled automakers warning that they'll be headed for bankruptcy unless they quickly make major changes. GM's shares plunged 25 percent and the Dow Jones industrial average fell 3.3 percent. The Los Angeles Times and Wall Street Journal point out that if the companies have to go into bankruptcy, the Obama administration wants to divide their "good" and "bad" assets. The "good" assets would form a new viable company that could continue to exist or be sold, and the "bad" assets would be purged. While the LAT says that bankruptcy "would be a last resort," the WSJ notes that it looks increasingly likely that GM "will be forced into filing for bankruptcy protection, sometime in mid-to-late May." USA Today says the administration's plan is designed to find a balance between "growing public outrage over corporate bailouts and fear that if the auto industry sinks, it will take millions of jobs and the fragile economy down with it." The Washington Post focuses on fears swirling around corporate America that the administration's plan for the automakers, and particularly the ouster of GM's chief executive, Rick Wagoner, means the government is ready to take similar steps with banks that received taxpayer money. USAT goes high with Obama's plans for the automakers but leads with word that the Environmental Protection Agency will announce plans today to monitor the quality of the air outside 62 schools in 22 states. The paper describes it as the "most sweeping effort to determine whether toxic chemicals permeate the air schoolchildren breathe." The investigation comes as a response to a USAT investigation published late last year that identified schools where the air appeared to be particularly toxic. To continue reading, click here.