Reports are that Rick Wagoner will resign from the helm of GM Monday after President Obama addresses the issue of additional aid for the company. Though it’s a little unclear from the reports, it sounds like Wagoner's resignation was requested by the administration.
Given that GM has not yet produced a workable plan and that the government is going to give them more time and probably more money, something was needed as lipstick for the pig. Axing a CEO works well as a diversion.
Better to be a bank CEO than an auto maker CEO.