Unlikely To Recover That By Selling GM Stock Alone
From the Internation Business Times:
By Angelo Young
on August 13 2013 2:09 PM
General Motors Company (NYSE:GM) is one step closer to getting American taxpayers out of its business, but the largest U.S. carmaker still owes them billions and recovering the money will be very unlikely based solely on the sale of GM shares held by the U.S. Treasury.
The Treasury Department said it sold $876.9 million worth of GM shares in July. Based on last month’s highest and lowest prices, the government sold between 23 million and 27 million shares.
“As of July 31, 2013, Treasury has recovered approximately $34.6 billion of its investment in GM through repayments, sales of stock, dividends, interest, and other income,” the Treasury said on Monday in its monthly report to Congress. Under the Trouble Asset Relief Program, the government bailed out banks and auto makers GM and Chrysler following the 2009 subprime mortgage meltdown.
The government initially invested $51 billion to “stabilize and restructure GM.” Based on this latest report, taxpayers are owed $16.4 billion of the principal bailout sum before they can break even.
You just finished berating Webby/Clown/Mullah for being uninformed and then you post this nonsense. The taxpayer isn't "owed" anything by GM. The government converted the bailout money into stock. That's it! No more debt! Feel free to criticize the decision, but the government made it, not GM.
Eh, you are right on the "owed," and I read over that too quickly without that term sinking in well.
I was reading this from the perspective of what was provided and what has been paid back, and the difference between the two. Paying attention to the "owed" term we could also look at the "invested" term as well and say this stipulates this was an "investment" and there was a certain amount of risk accepted and nothing needed to be paid back with the acceptance of that risk. Do you think it would have been prudent at the time to believe that when GM stock would be issued that it would only go up with the success of the company, and that the stock would likely be potentially worth more than when received, thereby making the "investment" in GM a good experience for the taxpayers? I think the Government had this in mind when that decision was made.
But GM is making money, and has vast tax breaks as well. I don't see a reason they could not pay back the "investment" (I don't agree with that term) in full. Chrysler paid back the loan guarantee in the early 1980's in full, and early. You would think GM would want that kind of good-will on their side.
Now if I was Webby/Clown/Mullah I would just repeat that GM owes the money and offer nothing else. That is the difference between us.
Typical UAW response. A paid poster. UAW thinking put junk up and you will not see the truth GM managed by Feds like BoBo who loves the useless volt. The UAW who wants employees to be paid more more................................... And insiders who keep cashing out free stock and bonus. What a dud combo. Want extra large fries with that??????????????????