CNN Financial News Producer
The Obama Administration gave General Motors and Chrysler failing grades today for their turnaround efforts and promised a sweeping overhaul of the troubled companies. As part that overhaul, the White House requested - and received - the resignation of GM CEO Rick Wagoner.
Under the new plan, the federal government will provide operating funds for both automakers for several weeks, during which time the companies will have to undergo significant restructuring.
"We cannot, we must not, and we will not let our auto industry simply vanish," Obama said. "This industry is, like no other, an emblem of the American spirit; a once and future symbol of America's success."
GM will get 60 days and Chrysler 30 days in which to make a final push toward proving they can run viable businesses. If Chrysler succeeds, it will receive a $6 billion loan. The amount of money GM may receive was not specified.
GM and Chrysler have already been given $17.4 billion, while Ford has not asked for any bailout money.
Be sure to check out CNNMoney.com’s complete coverage of Detroit’s downfall.
Speaking of bailouts, Treasury Secretary Tim Geithner said in an interview Sunday that of the original $700 billion allocated last year to bailout out the nation’s banks, only about 20% of that money remains.
Geithner said the Treasury has about $135 billion left, and while he warned that some institutions will need “substantial” government aid, he declined to say whether he will request any additional funding.
“If we get to that point, we’ll go to Congress and make the strongest case possible and help them understand why this will be cheaper over the long run to move aggressively,” he told ABC News.
Earlier this month, Geithner announced a plan shore up the banking sector with a public-private partnership to finance the purchase of so called “toxic assets” from the banks’ balance sheets.
Stocks on Wall Street tumbled right out of the starting gate as worries about the auto industry and banking system gave investors a reason to keep retreating after the recent rally.
Stocks fell Friday as well, with investors retreating after pushing the major gauges up more than 20% in less than three weeks on some optimism that the economy is closer to stabilizing.
But after that run, stocks were vulnerable to a pullback, and the concerns about the auto and banking sectors provided the catalyst today.
At the “Group of 20” meeting this week, President Obama is expected to push the new regulations that he and Secretary Geithner pitched to Congress last week as a way to prevent another financial market collapse.
Obama heads to London on Tuesday and will meet the next day with the leaders of Great Britain, Russia and China.
He will emphasize the need to regulate hedge funds and derivatives markets, encourage better capitalization of financial companies and "forge coordination among regulators," said one Obama adviser. The need to crack down on offshore tax havens is also on the agenda.
And gas prices rose 3-tenths of a cent overnight to $2.048 a gallon, the 13th consecutive increase.
30 states and the District of Columbia have regular unleaded gas prices of $2 and higher. 20 states have regular unleaded gas prices below $2.
The highest gas prices are in Alaska ($2.477). The cheapest gas prices are in Wyoming ($1.838).
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