/ General Motors, News / No profit for Taxpayers on GM Bailout

No profit for Taxpayers on GM Bailout

Linked In Share
No profit for Taxpayers on GM Bailout

If the Treasury Department earned a profit by selling its shares in AIG, putting and end to the controversial bailout, this would not be the case with GM.

Back in 2009 the Obama administration offered GM a $49.5 billion bailout, to help the automaker avoid a sure death, but the automaker managed to pay back only $23.1 billion. Now the treasury department decided to sell its stake in GM over the next 15 months. GM will buy back 200 million shares, which is a little less than half, for $5.5 billion by the end of 2012 and the rest of 19% or 300.1 million shares are to be sold through 2013 and maybe 2014.

The government’s sell of GM shares means the beginning of a new era for the automaker, which has been labeled as ‘Government Motors’ due to this bailout. During the presidential campaign this year, Republican Mitt Romney said he would sell all GM shares even at a much lower price to get the feds out of the private sector. It seems that President Obama found Romney’s advice quite useful.

Even if GM will finally be a fully private enterprise, its name will still be tainted by the fact that it failed to pay back all the taxpayer money, owing the government $26.4 billion. GM will buy back the 200 million shares at the price of $27.50 per share and a total of $5.5 billion. But the rest of the shares will have to be sold at an average price of $70 so that the taxpayers would get their money back, which is quite impossible.

Although analysts predict a surge in GM share price of $33 on average in the following 12 months, it would still be a loss of around $6 billion for taxpayers. So without a miraculously increase in GM stock, the price of the GM bailout to taxpayers will be around $10 billion to $12 billion.

by Ana Cezara Savin (my Google+) - Thursday, December 20th, 2012 - filed under General Motors, News. Image credit: .
Linked In Share
Related Articles
bailout GM no profit taxpayers treasury department


Discuss: No profit for Taxpayers on GM Bailout

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Rosberg must relax to get back in fight – Frentzen
Rosberg must relax to get back in fight – FrentzenOct.21 (GMM/Inautonews.com) Nico Rosberg needs to relax if he wants to get back into the world championship fight. That is the ...
Mercedes-Benz S65 AMG gets updated by Voltage Design
Mercedes-Benz S65 AMG gets updated by Voltage DesignThe hottest version of the new-gen Mercedes-Benz S-Class, the S65 AMG, has been recently updated by the aftermarket specialists ...
2015 Ford Focus gets priced in Europe
2015 Ford Focus gets priced in EuropeFord has announced the official price list for the 2015 Focus on the Old Continent. The cheapest version of the 2015 Ford Focus ...
Volkswagen Golf R 400 Concept to get production version
Volkswagen Golf R 400 Concept to get production versionA new report is indicating that the impressive VW Golf R 400 Concept will be gaining a production version after all. Do you ...
BMW i9 supercar might be introduced in 2016
BMW i9 supercar might be introduced in 2016BMW is said to be considering the development of an i9 supercar which will be introduced in 2016. Rumors on a brand new BMW ...
2015 Porsche 911 GT3 RS leaked in patent images
2015 Porsche 911 GT3 RS leaked in patent imagesThe first images with the 2015 Porsche 911 GT3 RS have ended up onto the web, providing us with a first look into the upcoming ...
McLaren P1 GTR’s price hinted
McLaren P1 GTR’s price hintedThe McLaren P1 GTR is just around the corner but even if it may be aimed specifically towards the track, this will be anything ...
Hyundai plans compact sports car
Hyundai plans compact sports carThe South Korean based automaker Hyundai is currently planning to develop a compact sports car which should hit the market in the ...
Next-gen Opel Astra caught on the Opel Road
Next-gen Opel Astra caught on the Opel RoadOne of the most successful models produced by Opel, the Astra, is getting ready to receive a new generation as the model is ...
Volkswagen Golf R Estate spied in action
Volkswagen Golf R Estate spied in actionA new body style of the Volkswagen Golf R, the Estate, is getting ready to hit the market as the company is currently testing it ...
Report – Nissan ready to replace Titan pick-up
Report – Nissan ready to replace Titan pick-upAccording to a report coming from TheDetroitBureau.com, the Japanese manufacturer has finally decided to refresh the aging and ...
U.S.-spec 2016 Ford Focus RS to be imported from Europe
U.S.-spec 2016 Ford Focus RS to be imported from EuropeThere will be no U.S.-spec version of the new-gen Ford Focus RS as the model in question will be imported from Europe. The Ford ...
Jaguar Land Rover mulls 10% market share in China
Jaguar Land Rover mulls 10% market share in ChinaTata Motors’ British subsidiary Jaguar Land Rover just opened the automaker’s first Chinese production plant in the city of ...
Recall roundup: Toyota vehicles for Takata airbag inflators
Recall roundup: Toyota vehicles for Takata airbag inflatorsThe Japanese based automaker Toyota has recently announced a recall for 247,000 vehicles because of the Takata airbag inflators ...
Ford Focus Electric gets repriced in the U.S.
Ford Focus Electric gets repriced in the U.S.The North American based automaker Ford has officially announced a price drop for the Focus Electric on its local auto ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Mercedes-Benz S65 AMG tuning voltage design 1
2015 Porsche 911 GT3 RS 1
Spy-Shots of Cars
Spy-Shots of Cars
2015 ford f-150 customized sema motor show 1
2016 honda hr-v us spec 1
Mercedes-Benz S550 Premium Sport Edition 1
2016 audi a4 1
BMW 1-Series DTM Sport Edition 1
bugatti veyron super sport black for sale 1
Audi RS7 Piloted Driving Concept 1
nissan micra cup race car 1

More automotive from inautonews
The hottest version of the new-gen Mercedes-Benz S-Class, the S65 AMG, has been recently updated by the aftermarket specialists from Voltage Design. According to the tuning company, the model in question has been fitted with an aerodynamic body kit, made out of the front apron wings, the side ...
read more
Inautonews Editors Section
Test Drive: Mercedes-Benz A180 CDI AT
Test Drive: Mercedes-Benz A180 CDI AT The new generation of the A-Class has been around since 2012 and its overall design is quite drastic, considering its predecessor. Now, two years ...
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive Citroen has introduced the second generation of the C-Elysee last year. The model is smaller than the C4 and it is based on the Peugeot 301, being ...
Test Drive: BMW X4 xDrive30d
Test Drive: BMW X4 xDrive30d The newest crossover to make its way into BMW’s lineup is the X4. This is based on the X3 and it is basically a smaller version of the X6, aimed ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Toyota vehicles for Takata airbag inflatorsThe Japanese based automaker Toyota has recently announced a recall for 247,000 vehicles because of ... US government ready to name new NHTSA bossAccording to Transportation Secretary Anthony Foxx, the Obama administration is edging closer to ...
Safety Section