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 ...
The list, Ping
Let me know if you would like to be on or off the ping list
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.
$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.
They violated bankruptcy law and screwed the stockholders.All in a end move to save the UAW pension fund.F’em all.
No one with any income is going to buy products from or invest in GM. Barry can go to hades.
Makes me wonder what percentage of sales might be reduced due to buyers staying away from a 2013 year model.
Solyndra drained less of the Treasury than this debacle.
I don’t want a GM vehicle..not even as a gift! :-(
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.
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.
I wonder if they paid back the billions that Bush loaned the GM?
I still don’t understand how the government can “loan” money to companies. But I guess I’m just about things like that.
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)
I will take my share owed to us taxpayers in the form of a 2013 ZR1 Corvette.
GMAC just went bankrupt.
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.
Look at how successful bail outs are!!
” 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.
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