Wednesday, December 19, 2012

Taxpayers to take multibillion-dollar haircut on GM bailout...

Taxpayers hardest hit...

Via FOX News:
The U.S. Treasury plans to sell its stake in General Motors Co over the coming year, all but assuring a multibillion-dollar loss in a move that will end the automaker's "Government Motors" era.

Treasury's plan - a two-step process that includes a $5.5 billion stock sale to GM - is part of a broader push to wind down the controversial financial bailout under the Troubled Asset Relief (TARP) program. TARP was created by former president George W. Bush to prevent the collapse of the U.S. banking industry during the 2007-2009 financial crisis.

The planned GM sale will raise the proceeds that Treasury has recovered to $28.6 billion of the $50 billion bailout GM received. With $20.9 billion left from the original bailout, the government would have to sell its remaining shares at an average price of $69.72 to break even.

Read more here...
Remember the campaign video where Obama claimed they repaid their loans?
A new Barack Obama campaign video narrated by Tom Hanks portrays the president’s bailout of General Motors and Chrysler as courageous and successful — with loans repaid by car companies.

"Because of the tough choices the president made, the stage was set for a resurgent U.S. auto industry," Hanks says in the 17-minute highlights reel of Obama’s presidency, titled The Road We’ve Traveled.

"With business booming, (GM and Chrysler) repaid their loans," he later concludes.

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