Help Wanted: Lenders Willing to Finance GM, Chrysler Bankruptcies

According to an article published in the Wall Street Journal today, outside advisers to the U.S. Treasury are seeking lenders to support what could be "the largest bankruptcy loan ever": at least $40 billion in financing for General Motors (NYSE: GM) and Chrysler.

As the automaker execs have previously said numerous times that they will not need to file for bankruptcy, sources say that the Treasury's actions are merely a precaution in case this worst-case scenario plays out.

The WSJ's sources are saying that the Treasury may have as many as 70 different lenders lined up to take on the massive process. The article mentions that discussions, so far, have placed private banks at the forefront of the possible financing. The most recent update provided by the government said that the advisers are still currently considering loan terms that would make the deal enticing to private banks.

Shares of GM are currently up 4.4% to $1.85. Meanwhile, shares of Ford (NYSE: F) are trading about 13.3% higher to $1.79. Notably, Ford's stock price actually surpassed GM's earlier this morning.

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