GM To Schmooze The Fed For $5 Billion More To Stay Afloat

Cash strapped General Motors whose sahres fell dramatically last week to an almost 60-year low, appears likely to seek a loan from the Federal Reserve's discount window. The Fed already is buying shorter-term commercial paper from corporations. Discount-window loans would have a longer maturity.

Barron's has learned of the auto maker's expected request from two persons with first-hand knowledge of the situation. GM wouldn't discuss what it termed "a rumor." The Fed also wouldn't comment. But the central bank would be under tremendous pressure to accede to such a request from a centerpiece of Industrial America, after having aided bankers, insurers and investment bankers, even though a "yes" would open the door to similar entreaties from other corporations.