Change

Obama Boots GM CEO

Calls for Chrysler merger in surprise shakeup.

Out with the old, in with the new: Minutes after the New York Times reported an unconfirmed rumor that chairman and chief execeutive of General Motors Rick Wagoner might resign, Politico and the Wall Street Journal confirmed it with a report that Wagoner's resignation is at "the government's behest," according to Politico. According to WSJ, it's all "part of an agreement to get a new package of federal aid," the second auto-industry bailout that Obama will announce in a speech tomorrow. Wagoner has been GM's chief for eight years, and there has been no indication of who will take over in Wagoner's stead. Together, GM and Chrysler have run through the $17.4 billion in federal loans they received from their first bailout; GM has asked for $16.6 billion more, and Chrysler for another $5 billion. Obama's auto task force seems inclined to grant a significant portion of Detroit's wishes, but with tight strings attached—one of which seems to be dispensing of Wagoner.