Treasury to lose $9B on GM

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EXCLUSIVE: TREASURY COULD TURN $4B PROFIT ON GM – Morning Money obtained figures from a source close to the GM IPO detailing what Treasury views as its current exposure to the automaker, whose shares closed at $34.19 yesterday, 3.6 percent above the $33 IPO price. The numbers so far add up to a $4 billion profit on the $36 billion the Obama administration put into GM.

If the underwriters’ over-allotment option is exercised in full, and Treasury’s remaining stake in GM is valued at the closing price yesterday, total repayments to the government would total $40.1 billion. That includes a $6.7 billion loan repayment; $700 million in interest and dividends; $2.1 billion in preferred stock repurchase; $13.5 billion in IPO proceeds; and remaining shares worth $17.1 billion.

The $40.1 billion in repayments would mean the Obama administration has more than recouped its $36.1 billion investment in GM and the federal government would recover all but approximately $9.4 billion of its $49.5 billion overall investment in GM ($13.4 billion of which came under the Bush administration).

http://www.politico.com/morningmoney/

[spookyturtle 9,466]

That is great news. So the only money that would be lost would be Bush's fault! Excellent!!

[mawilson 2,133]

Only 9 billion dollars? Wow. They lose more money under the couch every day.

[spookyturtle 9,466]

Only 9 billion dollars? Wow. They lose more money under the couch every day.

It was a good investment.

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It was a good investment.

They lost 9 billion dollars. How is that a good investment?

[I AM NOT THAT GUY 5,715]

They lost 9 billion dollars. How is that a good investment?

Democrats will win Michigan in 2012.

[Mr. Big Dog 10,747]

What this calculation misses is the revenue generated from payroll and income taxes on the million or so people that were kept employed and the cost savings in unemployment and other benefits that a collapse of GM would certainly have caused.

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What this calculation misses is the revenue generated from payroll and income taxes on the million or so people that were kept employed and the cost savings in unemployment and other benefits that a collapse of GM would certainly have caused.

There ya go again with your fuzzy commie math.

[spookyturtle 9,466]

They lost 9 billion dollars. How is that a good investment?

GM was saved and will be a better company in the future. Thousands of jobs were saved. It was good for the country. How much of the financial system bailout has been paid back? How much has been spent on the two wars? If we're going to invest, I prefer it to be right here on US soil. Plus the money lost was Bush's fault.

[mawilson 2,133]

They lost 9 billion dollars. How is that a good investment?

It's good compared to other "investments" (e.g. AIG) where they lost a lot more than $9bn.

[Mr. Big Dog 10,747]

There ya go again with your fuzzy commie math.

What? GM employees and employees of companies that supply GM don't pay income and payroll taxes? And those laid off from GM are not eligible for unemployment and other benefits?

[I AM NOT THAT GUY 5,715]

It's good compared to other "investments" (e.g. AIG) where they lost a lot more than $9bn.

And the House of Representatives in 2010.

[spookyturtle 9,466]

And the House of Representatives in 2010.

The AIG bailout was under Bush's watch.

[I AM NOT THAT GUY 5,715]

The AIG bailout was under Bush's watch.

And Nancy Pelosi's.

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GM was saved and will be a better company in the future. Thousands of jobs were saved. It was good for the country. How much of the financial system bailout has been paid back? How much has been spent on the two wars? If we're going to invest, I prefer it to be right here on US soil. Plus the money lost was Bush's fault.

Why are you picking on the wars? If it wasn' for the wars you'd be speaking Arabic today.