Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Ex-Treasury Chief Ignored GM Plea

February 2, 2010
2 min to read


WASHINGTON - Former Treasury Secretary Henry Paulson repeatedly refused to meet with General Motors chief executive Rick Wagoner -- and then didn't believe him when he warned the company could collapse by Nov. 7, 2008, reported The Detroit News.


In a new memoir published today by Business Plus books, "On The Brink: Inside the Race to Stop the Collapse of the Global Financial System," Paulson recounts the Bush administration's deep reluctance to save Detroit automakers.

Ad Loading...


For President George W. Bush, who ultimately saved GM and Chrysler with $17.4 billion in the final days of his term, "an auto bailout was a difficult pill to swallow," Paulson wrote. "He disliked bailouts, and he disdained Detroit for not making cars people wanted to buy."


GM started seeking cash in the fall, Paulson writes.


On Oct. 13, Paulson and aides met with Wagoner and two GM board members, but only reluctantly.


"Rick had been calling me, trying to set up a meeting for some time, but I had declined to so," Paulson wrote, insisting that the $700 billion Troubled Asset Relief Program should not be used to bail out automakers.


At the meeting, Wagoner warned that GM faced a "bank-like run from creditors and suppliers who had not been paid on a timely basis."

Ad Loading...


Wagoner said GM needed $10 billion: a $5 billion loan and a $5 billion line of credit. "We need a bridge loan to avoid disaster and we need it quickly," Wagoner said, according to Paulson. "I don't believe we can make it past Nov. 7 (Election Day)."


But Paulson didn't believe Wagoner.


"He and his team may have sincerely believed this, but I knew better. I worked with companies like GM long enough to know that they did not die quickly," he wrote.


Instead, Paulson told Wagoner to work with Commerce Secretary Carlos Gutierrez about getting help elsewhere.


"I was loath to do anything that might appear to reflect politics," Paulson said.

Ad Loading...


Wagoner has declined to comment through a spokesman since being fired by the Obama administration in March 2009.

More Industry

text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →
Photo of rear of electric 2026 Mercedes VLE
Industryby Hannah MitchellMarch 10, 2026

No End in Sight for Vehicle Inflation

The February average transaction price was well above a three-year average annual bump, but Cox analysts consider today’s prices to be on the normal side.

Read More →
Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 3, 2026

Auto Dealers Cautiously Hopeful

Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.

Read More →
Industryby StaffMarch 3, 2026

Black Book: Weekly Market Update

Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.

Read More →
white Audi car in a service bay
Industryby Lauren LawrenceMarch 3, 2026

Recall Service Reaches Milestone

Eight state DMVs participate in the Vehicle Recall Search Service created by Carfax and the Alliance for Automotive Innovation to reduce the number of unaddressed vehicle recall repairs.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 2, 2026

Meet the Editor: Hannah Mitchell

A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.

Read More →
Summit Updatesby StaffMarch 2, 2026

Enhance Your Dealer's F&I Workflow at Agent Summit

This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.

Read More →
Industryby Hannah MitchellMarch 2, 2026

Auto Brands Hold the Line on Retention

A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →