03/28/2008 02:45 am ET Updated May 25, 2011

Mortgage Mess Ends Honeymoon With Wall Street For GM Chief

The meltdown in the mortgage market and slumping car sales have combined to sour General Motors Corp. Chief Executive Rick Wagoner's brief honeymoon with Wall Street.

The auto giant's stock has fallen 39% since it reached a three-year high of $43.20 a share a month ago on the strength of cost cuts tied to its new labor contract with the United Auto Workers. As auto sales have continued to falter, trouble has erupted on other fronts, including a big bet on subprime-mortgage lending made on Mr. Wagoner's watch.

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