The Wall Street Journal says.....
The U.S. government is considering swapping some of the $13.4 billion it lent General Motors Corp. for ownership in a stripped-down version of the auto maker, a move it hopes will push the United Auto Workers union and bondholders to accept similar concessions, said people familiar with the matter.
Interim GM Chairman Kent Kresa said the company would welcome the government's willingness to let it pay off some of the loans with stock. "Certainly that would be helpful," he said in an interview Tuesday.
Government Motors. Did anyone doubt it?