Chrysler CEO Robert Nardelli says he will step down after the company emerges from bankruptcy protection. President Barack Obama announced Thursday that the automaker would file for Chapter 11 after the government could not reach a debt-reduction agreement with creditors.

Chrysler CEO Robert Nardelli says he will step down after the company emerges from bankruptcy protection. President Barack Obama announced Thursday that the automaker would file for Chapter 11 after the government could not reach a debt-reduction agreement with creditors.

The Obama administration has unveiled a sweeping overhaul of the financial system designed to impose greater regulation on major players like hedge funds.

The government says it has provided $1.46 billion to 19 banks in the latest payments from its $700 billion financial rescue fund.

President Barack Obama says other nations must sign on to aggressive steps to jump-start their own economies, warning that without global coordination U.S. actions could falter. Obama told reporters after meeting Wednesday in the Oval Office with Treasury Secretary Timothy Geithner that continued deterioration in the world economy is “going to set us back.“

President Barack Obama’s Treasury secretary says the administration has inherited “the worst fiscal situation in American history.“

General Motors and Chrysler are racing to complete restructuring plans. They are facing a deadline Tuesday to present an outline of how they intend to make themselves viable again and repay billions in government loans.

The Treasury Department says it will need to borrow $493 billion in the first three months of this year, a record amount for the January-March period.

Treasury Secretary Timothy Geithner is meeting with top government officials to develop the administration’s plan for overhauling the $700 billion bailout program and improve regulation of the financial system.

The Obama administration is increasing transparency in the government’s controversial $700 billion financial rescue program and says more reforms are in the works.

The Treasury Department says it has distributed another $386 million to 23 banks, the first awards from the federal bailout fund since President Barack Obama took office.

The Senate Finance Committee has cleared the nomination of Timothy Geithner as treasury secretary despite unhappiness over his tax mistakes.

President Barack Obama’s nominee to be treasury secretary is urging Congress to act quickly and forcefully to deal with the economic crisis.

The Treasury Department says the federal government already has run up a record deficit of $485.2 billion in just the first three months of the current budget year. The deficit is on track to surpass $1 trillion for all of fiscal 2009 and some economists believe it could go much higher.

Treasury Secretary Henry Paulson says allowing mortgage giants Fannie Mae and Freddie Mac to return to their old operating ways is not an option.