By Daily Crux Editor Sean Goldsmith:

Talks between the Treasury and Chrysler's creditors broke down yesterday, and the auto giant will likely file for bankruptcy today. Between its plants and dealerships, Chrysler employs approximately 194,000 people.

The Treasury boosted its most recent offer to Chrysler's creditors by $250 million to $2.25 billion for $6.9 billion in debt, but the creditors - whose loans are secured by Chrysler's assets - didn't budge.

If Chrysler were to file for Chapter 11, President Obama says "it would be a very quick type of bankruptcy." Bankruptcy would allow the company to speed its alliance with Fiat and easily break contracts with its dealerships… however, when you're dealing with 194,000 jobs and 115,000 retirees, things will inevitably get messy.

There was one shining moment of capitalism (they're rare these days) throughout this ordeal… Some creditors did not agree to the latest deal because they had larger positions in Ford and/or General Motors, and they would benefit from a Chrysler bankruptcy.

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