GM (GM) shares are up 9% on rumors that all major issues needed to set up a merger with Chrysler have been worked out with Cerberus which owns a majority of the smaller car company.
Many analysts think the marriage will result in the loss of 35,000 jobs.
The merger cannot be done without support from the federal government. GM does not have the capital to pay severance and other cash costs needed for an integration.
So, the Federal Reserve may lend GM $10 billion to put a huge number of taxpayers out on the streets.
Douglas A. McIntyre