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GM: Still $42B in the Hole
Washington Free Beacon ^ | 7/26/12 | Bill McMorris

Posted on 07/26/2012 6:25:21 PM PDT by Nachum

Despite President Barack Obama’s stories about a resurgent GM ready to repay its bailout tab, the automaker and its former bank still owe taxpayers nearly $42 billion, according to an inspector general’s report.

GM owes $27 billion on the nearly $50 billion it received from the auto bailout and Ally Bank, the company’s lending arm, owes $14.7 billion of the $17.2 billion taxpayer-funded bailout it received.

Obama has promoted the auto bailout as a success story, highlighting the manufacturing jobs it may have saved in swing states such as Ohio and Michigan.

“I refused to turn my back on a great industry and American workers. I bet on American workers. I bet on American manufacturing,” he said at a campaign rally in Oakland. “Three years later, the American auto industry has come roaring back.”

GM’s stock has plummeted in recent months after stagnant development in overseas markets. It hit a new low on Wednesday, falling to $18.80, a 52 percent drop from its January 2011 high of $38.90.

The rapid decline of the stock price has kept taxpayers on the hook for billions in unpaid bailout dollars. The stock would need to make a quick—and meteoric—turnaround for taxpayers to break even.

“In order to recoup its total investment in GM, Treasury will need to recover an additional $27 billion in proceeds. This translates to an average of $53.98 per share on its remaining common shares in New GM,” the IG report concluded.

The federal government has maintained a 32 percent ownership interest in GM, despite promises to sell off its shares after the November 2010 IPO. The administration has also maintained a controlling interest in Ally Financial, formerly known as GMAC.

(Excerpt) Read more at freebeacon.com ...


TOPICS: News/Current Events
KEYWORDS: gm; hole
Obamanomics
1 posted on 07/26/2012 6:25:27 PM PDT by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, Ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 07/26/2012 6:27:03 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum

Everything he touches goes into a legal and financial cancer.

The whole country is in spreading legal, moral and financial cancer: it is why it is called progress and that liberals “win”

Yeah, we want you to be successful, cancer.


3 posted on 07/26/2012 6:32:19 PM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: Nachum

$50 billion to create a company with a market capitalization of $30 billion. Maybe Obama was right. They didn’t build that, someone else made that happen.


4 posted on 07/26/2012 6:33:57 PM PDT by fhayek
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To: Nachum

They violated bankruptcy law and screwed the stockholders.All in a end move to save the UAW pension fund.F’em all.


5 posted on 07/26/2012 6:34:44 PM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: Nachum

No one with any income is going to buy products from or invest in GM. Barry can go to hades.


6 posted on 07/26/2012 6:36:13 PM PDT by VRWC For Truth (Roberts has perverted the Constitution)
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To: Nachum

Makes me wonder what percentage of sales might be reduced due to buyers staying away from a 2013 year model.


7 posted on 07/26/2012 6:38:42 PM PDT by Eye of Unk (Going mobile, posts will be brief. No spellcheck for the grammar nazis.)
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To: Nachum
GM bondholders still screwed.
Taxpayers screwed.
GM even more in the grip of the UAW.
Nobody wants a frick’n “Volt”.

Solyndra drained less of the Treasury than this debacle.

8 posted on 07/26/2012 6:41:04 PM PDT by Gabrial (The nightmare will continue as long as the nightmare is in the White House)
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To: Gabrial

I don’t want a GM vehicle..not even as a gift! :-(


9 posted on 07/26/2012 6:48:05 PM PDT by Bobalu (It is not obama we are fighting, it is the media.)
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To: VRWC For Truth

The Weather Channel had a Volt commercial on this morning with a guy standing by the car reading his lines off a bit to the side, telling us what a great car it is.


10 posted on 07/26/2012 6:49:03 PM PDT by treetopsandroofs (Had FDR been GOP, there would have been no World Wars, just "The Great War" and "Roosevelt's Wars".)
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To: Gabrial

I will never buy government communist motors again. I used to but never again. This is nothing but communism and this company will fail because the only thing holding it up is government purchases of their crap. Every once in a while i will see Some duped idiot on the freeway with a government motors heap but not very often. Bye Bye miss American pie.


11 posted on 07/26/2012 6:51:15 PM PDT by marygonzo
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To: Nachum

I wonder if they paid back the billions that Bush loaned the GM?


12 posted on 07/26/2012 6:55:50 PM PDT by Uncle Slayton
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To: Nachum
I'm expecting any day now to see the Army driving camouflage painted Chevy Volts.
13 posted on 07/26/2012 6:56:50 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: Uncle Slayton

I still don’t understand how the government can “loan” money to companies. But I guess I’m just about things like that.


14 posted on 07/26/2012 7:37:38 PM PDT by ilovesarah2012
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To: Nachum

If you were not successful, you didn’t do it on your own. You had help from the Government.

- Pres. B. Hussein Obama

(he said something like that, anyway)


15 posted on 07/26/2012 8:11:58 PM PDT by Rocky (Obama is pure evil)
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To: Nachum

I will take my share owed to us taxpayers in the form of a 2013 ZR1 Corvette.


16 posted on 07/26/2012 8:13:27 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Nachum

GMAC just went bankrupt.


17 posted on 07/26/2012 8:36:19 PM PDT by MonicaG (God bless our military! Praying and thanking God for you every day. Thank you!)
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To: Nachum

Gee, imagine what a hole GM would be in if they didn’t “have the most successful year in the company’s history” according to their latest ad.

Liars all.


18 posted on 07/27/2012 2:43:18 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: Nachum

Look at how successful bail outs are!!


19 posted on 07/27/2012 7:32:48 AM PDT by dalebert
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To: MonicaG

” GMAC just went bankrupt.”

GMAC= Ally Financial. I think China either took it over, or bailed it out. GM made a horrific deal with China.


20 posted on 07/27/2012 12:59:30 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: Nachum

GM sucks.

So does Chrysler.

I worked in the supply chain for these clowns before I left michigan for good a few years ago. When my dodge died earlier this year, I replaced it with a toyota.

I will not buy a big three product again. Ever.


21 posted on 07/27/2012 5:37:21 PM PDT by QualityMan (Don't Tread on Me)
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