US: Wall Street bank suspends GM rating
Goldman Sachs on Thursday suspended its rating on General Motors, saying the automaker needs at least $22bn in US government aid to survive the credit crunch.
According to Reuters, the Wall Street investment bank forecast the automaker would end this year with $12.5bn in cash, within the $11bn to $14bn minimum range its has said it needs to operate, and requiring it to look to the government for aid.
Goldman Sachs reportedly said a new programme to support the auto industry was most likely, though the timing was uncertain.
Also on Thursday, JPMorgan cut its GM rating to "neutral" from "overweight" and said the automaker needed "something immediately" to make it through the end of the year, the news agency noted.
JPMorgan also said a government bailout could easily reach $30bn unless GM reforms its vast liability structure.
The warnings are the latest in a series of gloomy forecasts from Wall Street banks in the wake of GM's deeper-than-expected third-quarter loss and cash burn announced on Friday, Reuters noted.