General Motors, an "icon of American business," has filed for Chapter 11 bankruptcy this morning at US Bankrutpcy Court in New York's Southern District. The NY Times reports, "The company was forced into the filing by President Obama, who is betting that by temporarily nationalizing the onetime icon of American capitalism, he can save at least a diminished automaker that is competitive." more ›

A U.S. Bankruptcy Court judge decided to postpone his decision regarding Chrysler's bankruptcy filing after objections from some of the automaker's lenders. Bloomberg News reports:

A group of Chrysler LLC’s secured lenders is seeking to block the bankrupt company’s plan to sell its business at auction this month, arguing that the U.S. government is violating federal law in order to preserve the automaker. more ›

According to the NY Times, "The Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by a June 1 deadline, despite G.M.’s public contention that it could still reorganize outside court." President Obama's auto task force, which is continuing talks with GM, wants to make sure a "bankruptcy filing is ready should the company" in case they cannot work out a deal with bondholders to "exchange roughly $28 billion in debt into equity in G.M. and with the United Automobile Workers union, which has balked at granting concessions without sacrifices from bondholders." The Times reports that one idea is to create a company that buys the "good assets" of a bankrupt GM, which lost nearly $31 billion last year (and received $13.4 billion in federal aid), while the "bad assets" are liquidated. This news is currently dragging Dow futures down. more ›