If GM gets much smaller it won't be 'too big to fail'

Date: Tue, 10 Feb 2009 12:01:36 -0500
If GM gets much smaller it won't be 'too big to fail'

General Motors will reportedly cut another 10,000 jobs as it struggles
to avoid bankruptcy and qualify for more federal bailout dollars. But
if it gets much smaller, it won't be "too big to fail."

TREASURY, FED UNVEIL $1.5 TRILLION RESCUE PLAN

Treasury Secretary Timothy Geithner produced his financial stability
plan on Tuesday, saying the Treasury and other federal agencies will
partner with private capital to create a fund for troubled bank assets
that could produce up to $1 trillion in financing capacity.

NEW BAILOUT MAY BE LESS ATTRACTIVE TO SOME BANKS

A new bank bailout plan to be unveiled by the Treasury Department is
set to create incentives for private sector investment into troubled
banks, but regulatory observers worry the incentives might not be
strong enough to bring in the kind of participation the administration
hopes for.

UBS TO SLASH MORE JOBS AFTER REPORTING $7 BILLION LOSS

Troubled Swiss banking group UBS says it will cut another 2,200 jobs
at its investment banking arm and restructure its wealth management
operations as it reported a hefty 8.1 billion Swiss francs ($7
billion) fourth-quarter loss.

OBAMA SAYS STIMULUS PLAN NOT PERFECT BUT URGES PASSAGE

President Barack Obama used prime-time television Monday night to
press his case for an economic stimulus package, saying the $800
billion-plus plan moving through Congress isn't perfect but is
urgently needed to help the staggering U.S. economy.