POLITICS
04/30/2009 05:12 am ET Updated May 25, 2011

U.S. Threatens Bankruptcy For GM, Chrysler

The Obama administration, wading deeply into the U.S. auto industry, is weighing an aggressive fix for General Motors Corp. and Chrysler that would divide their "good" and "bad" assets and send them into bankruptcy to purge their biggest problems.

The potential move would transform two companies that have helped define U.S. industrial power over the last century. Following the ouster of GM Chief Executive Rick Wagoner, it would represent one of the biggest-ever government incursions into private enterprise.

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