July, 10 2009: High Points In The U.S. Economy

July 10, 2009 5:48 p.m. EST

Washington, D.C. (AHN) - The U.S. economy took a couple steps in the right direction Friday with the emergence of GM from bankruptcy and word that U.S. banks will participate in a government program to modify second mortgages.

Second mortgage modifications were added to President Obama's home affordability program just over a month ago. Many big U.S. banks are now getting ready to sign contract to participate in the plan a Treasury official said, according to Bloomberg.com.

The program is similar to the one installed for first mortgages, where lenders receive funds for reworking loans and forgiving portions of debt.

The program is aimed at keeping more Americans in their homes by modify home loans to a manageable monthly payment.

Elsewhere, General Motors emerged from Chapter 11 on Friday with a leaner balance sheet and a new restructuring plan.

GM CEO Fritz Henderson spoke at a press conference on Friday stating that the quick emergence from bankruptcy shows the automaker can execute plans fast.

Henderson went on to say GM is committed to repaying government funds and focused on building and selling great cars that serve customer needs.

General Motors may look to issue shares of the new company as early as next year.