It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
The Obama administration said Wednesday it will sell 200 million shares — or 40 percent of its remaining stake in General Motors Co. — back to the automaker and announced plans to completely exit the Detroit automaker by March 2014. The Detroit automaker said it will purchase 200 million shares of GM stock held by Treasury for $5.5 billion — or $27.50 per share — nearly $2 above the stock's closing price on Tuesday. GM shares jumped sharply on the news and were up 7.5 percent to $27.36, or $1.
The taxpayers are projected to lose 13 Billion dollars in this deal. GM should have been allowed to fail. Now they have received a gift of billions of taxpayer dollars that we will never get back. A post bankruptcy GM would have been a much more viable company, they could have broken the union stranglehold and the insane benefits packages that add thousands of dollars to the price of every vehicle that make their products non-competitive. TARP and the bailouts were a travesty that raped the taxpayer and were, imo, an act of treason.
Still, taxpayers will almost certainly lose billions of dollars in the $49.5 billion GM bailout - and the government would need to sell its remaining shares for about $70 each to break even. If the government sold the rest of its stock at current prices, taxpayers would lose more than $13 billion. But profits from the bank and AIG bailouts will largely offset the auto bailout losses.