A few weeks ago I appeared on CNBC's Closing Bell with Maria Bartiromo to discuss executive pay. One interesting point in the interview was when Ms. Bartiromo argued that it would be difficult to get good people to run big banks if their pay was limited because Wall Streeters are motivated primarily by money. I suggested that if that were true, then you would never see a former CEO of Goldman Sachs Group, Inc. (NYSE: GS) take the enormous pay cut required to become Treasury Secretary.

I am not sure what motivates Wall Streeters to take those pay cuts. But today, another prominent one -- Steve Rattner with whom I worked in the 2004 presidential campaign -- announced he is leaving his private equity firm, Quadrangle Group, and shipping off to Washington to work as Counselor to the Secretary (of the Treasury).

President Obama has reportedly dropped the idea of appointing a car czar to oversee the restructuring of General Motors (NYSE: GM) and Chrysler, and will instead leave his senior economic advisers to oversee the task.

The Presidential Task Force on Autos will be charged with overseeing the turnaround, according to an administration official who spoke with the New York Times.

What impact will this have? It's hard to know: But restructuring the industry by committee could lead to the same bureaucracy and inability to make tough decisions quickly that got the auto industry into this mess in the first place. The lack of a figurehead overseeing the turnaround also lacks narrative appeal for those who were hoping to see someone like Lee Iacocca make a comeback and save the day.

President Bush and his spokesman made it clear that loans to GM (NYSE: GM) and Chrysler may carry eventual Chapter 11 filings with them.

According to The New York Times, "The White House raised for the first time on Thursday the prospect of forcing General Motors and Chrysler into a managed bankruptcy as a solution to save the companies from financial collapse."

It's about time. The Administration has come around to the conclusion that many experts on restructuring have believed for months. The UAW, suppliers, and creditors cannot be forced to their knees without a bankruptcy judge standing over them.

The theory that a number of members of Congress wanted to adopt is that GM and Chrysler should get loans to carry them over to March 31, at which time they can present a "car czar" with restructuring packages. But what incentives do the union and creditors have to play ball? They may simply believe that the Obama White House will extend more loans to help the firms to the end of next year, which is hardly a way to induce those who need to give up economic benefits much incentive. It is human nature to hope for the best and ignore the worst. It is also a part of the UAW's history to adopt the arrogant attitude that it can run the car industry by dictating that its workers should get the best benefits in the world.

The only way to solve the car industry's problems is with one bold stroke. If people owed money and people owed pensions fall in the process, so be it.

Douglas A. McIntyre is an editor at 24/7 Wall St.

81-year old former Federal Reserve Chairman Paul Volcker is at the top of the list of candidates for the role of Car Czar that would be created by a bailout of the auto industry.

Speaker of the House Nancy Pelosi has suggested that he would be a choice "acceptable to both sides" and a person close to Mr. Volcker told (subscription required) The Wall Street Journal that Volcker would "probably do it" with enough persuasion.

Mr. Volcker already serves as a key adviser to President-elect Obama, but lacks any experience with the auto industry. There is considerable debate about whether auto experience is necessary to serve as competent car czar.

To me though, the auto industry needs a more charismatic leader to be the face and voice of its turnaround plan. There's no question that Volcker is brilliant and respected, but let's face it: He's an octogenarian economist, not exactly the kind of person we can look to to breathe life into an industry that needs something to get it going.

Jack Welch has also been named as a possibility, but he seems a little bit washed up. How about a visionary leader who's led a turnaround in a completely different industry? Steve Jobs, perhaps, if he could be persuaded for the good of his country?

The fact is that the bureaucratic details of the bailout will be handled by staff: What is needed is vision and excitement.