[frogger]

Excerpts from Reuters:

General Motors Corp (GM.N) posted its largest quarterly net loss on Wednesday, reflecting a $39 billion charge related to unclaimed tax credits and a deeper-than-expected loss at former finance subsidiary GMAC.

GM had warned on Tuesday it would book the $39 billion charge against deferred tax assets. It was prompted by GM's cumulative losses over three years, the risk of weaker auto sales and the pressure facing GMAC in coming quarters.

The move wiped out all the deferred tax credits GM had accrued in the three years since it began taking charges to restructure its troubled U.S. operations.

Accounting rules would still allow GM to use those credits to offset future taxes if it returns to profitability, GM's Henderson told reporters. "Nothing has changed in terms of the economics of the business," he said.

GM's revenue fell 10 percent to $43.8 billion, a drop attributed to its spin-off of GMAC.

The cost to protect GM bonds against the risk of default jumped to about 600 basis points, meaning it costs $600,000 annually to insure $10 million of debt for five years.

GM shares were down $1.92, or 5.3 percent, at $34.24 in late trading on the New York Stock Exchange.