[h=2]The Treasury Department announced plans on Wednesday to sell the 500 million shares of General Motors it still owns, closing the books on the $51 billion bailout that started four years ago.[/h] But even with the $12 billion to $14 billion Treasury will likely recoup from the stock sales, taxpayers will probably lose out on the GM bailout when all is said and done.
Treasury said GM has agreed to repurchase 200 million shares by the end of this year for $27.50 a share, a nearly 8% premium above Tuesday's closing price. Shares of GM jumped more than 7% in early trading Wednesday on the news.
Treasury intends to sell its remaining 300 million shares through various means in an orderly fashion within the next 12-15 months, subject to market conditions. Sales could start as soon as January.
After the repurchase of shares by GM, there will still be $21.6 billion of bailout funds yet to be returned to taxpayers. The average sale price on the remaining 300 million shares would have to be nearly $72 in order for Treasury to break even. That's nearly triple Tuesday's closing price.
http://money.cnn.com/2012/12/19/news/companies/treasury-gm-shares/
Would it be cynical to suggest that the Obama administration waited until after the election was over to do this, so Obama could continue to lie about how he ‘saved GM’ and it didn’t cost the taxpayers a dime?
All through the campaign, and even before, we were constantly told by the news media and the rest of the Democrat Party that General Motors had paid back everything it owed the taxpayers. When, it turns out, they are only going to pay back a little more than half of what was "borrowed."
The taxpayers are going to lose close to $22 billion dollars on the deal. And $22 billion dollars ‘could feed a lot of hungry children.’
Treasury said GM has agreed to repurchase 200 million shares by the end of this year for $27.50 a share, a nearly 8% premium above Tuesday's closing price. Shares of GM jumped more than 7% in early trading Wednesday on the news.
Treasury intends to sell its remaining 300 million shares through various means in an orderly fashion within the next 12-15 months, subject to market conditions. Sales could start as soon as January.
After the repurchase of shares by GM, there will still be $21.6 billion of bailout funds yet to be returned to taxpayers. The average sale price on the remaining 300 million shares would have to be nearly $72 in order for Treasury to break even. That's nearly triple Tuesday's closing price.
http://money.cnn.com/2012/12/19/news/companies/treasury-gm-shares/
Would it be cynical to suggest that the Obama administration waited until after the election was over to do this, so Obama could continue to lie about how he ‘saved GM’ and it didn’t cost the taxpayers a dime?
All through the campaign, and even before, we were constantly told by the news media and the rest of the Democrat Party that General Motors had paid back everything it owed the taxpayers. When, it turns out, they are only going to pay back a little more than half of what was "borrowed."
The taxpayers are going to lose close to $22 billion dollars on the deal. And $22 billion dollars ‘could feed a lot of hungry children.’