Thursday, February 26, 2009

GM says it "may" go bankrupt. Which means it "will"

Thursday, February 26, 2009

GM's auditors are pouring through its financial statements to determine if it can continue as a "going concern." GM lost $9.6 billion in the fourth-quarter, so you can't blame them for worrying about bankruptcy. The current quarter is going to be another bomb.

According to CFO Ray Young, GM needs more federal aid (just $30 billion) to stay afloat. Even so, it's expected that GM will get the "going concern" notice. Most companies that receive one go bankrupt.

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