Shares Suffer After US Auto Bailout Collapse

The collapse of a US bailout of the three American car giants sparked a new global share battering Friday, Agence France-Presse reported. With Russia officially entering recession, Bank of America and other international companies making more mass layoffs and European production falling faster than expected, the grim data built up around the world. Talks among US senators on salvaging a $14 billion deal fund for Ford Motor Co, General Motors (GM) and Chrysler collapsed late Thursday. GM has hired lawyers for a potential bankruptcy filing. The deal passed the House of Representatives this week but faced stiff opposition from Republican senators who demanded that wages paid by the US firms be brought into line with those at foreign firms with non-union plants. The plan would provide GM and Chrysler loans to operate until March 31 and force them to craft major restructuring plans that include paying back the government aid. Ford says it faces no immediate credit crisis. Asian and European stocks went into freefall before New York's opening Friday. Read more.