GM and Ford are biggest decliners in S&P 500; GM down 20% to 1933 level

GM shares drop to lowest level since 1933

SAN FRANCISCO (MarketWatch) -

General Motors Corp shares dropped as much as 24% to hit a 76-year low of $1.09 on Tuesday, after CEO Fritz Henderson a day earlier said a bankruptcy is "more probable." Also weighing on the stock, word broke after the market closed Monday that a group of top GM executives spent last week selling all their shares in the company, according to SEC filings. GM is approaching a June 1 deadline to reach concessions from the United Auto Workers union and its bondholders or face bankruptcy, like rival Chrysler LLC.