Not a Good Sign: Cerberus Reopens Talks to Merge Chrysler With GM

"Tonight we learn, via the Wall Street Journal, that Cerberus has revived merger talks for Chrysler with GM. The possibility of a deal would seem to complicate vastly an attempt to craft a rescue package (if Paulson & Co. was close to a deal for each of the Detroit automakers, the spanner-in-the-works of a pending transaction would force the powers that be to rethink how what the offered for GM and Chrysler separately would change if they were combined. It introduces an element of delay for two companies that have said they need a cash infusion in very short order."