Treasury announces GM exit strategy; automaker buying 200 million shares from U.S

Treasury announces GM exit strategy; automaker buying 200 million shares from U.S

www.detroitnews.com

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.

(visit the link for the full news article)

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.

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.


www.detroitnews.com
(visit the link for the full news article)

Ford didn`t accept any bailout money, if ford can run a profitable auto making company than why can`t GM?
Gm is buying back the stocks for $27 a share, but how much did the taxpayers pay per share when were forced to buy them?
Why is the government selling them back the shares now if we are going to lose money? why doesn`t the government hold those shares until the price goes up so that the tax payers don`t lose money?
No wonder the government is broke, they buy high and sell low.

reply to post by Tardacus


but why are they buying high and selling low?
surely the politicians arent completely bought out by these corporations and banks that would mean they are afforded far too many powers and require a new look at the effects of "free markets"

Ford took $6 billion. It was disguised as "green development" money. And the loss to taxpayers with GM will be far more than $13 billion.

How in the world does one ever reach a conclusion that there is a "free market"(which is a contradictional term.....see mind control)
The people who own the shares of GM...who will benefit by this....remain shielded from losses and protected from failure.
Its not that the Banks, the car corps, wall strret etc is "too big to fail.."...
The facts are simply that the NETWORK of ELITE and PRIVILEDGED wealhy, take care of their own.
They have sufficient control of the world finances, to be able to Milk the system of the wealth we create.
Shadowy manipulations of LIBOR, The Stock Exchange,Commodities....etc, can and are accomplished by the strength of sheer wealth...
The corruption has prospered and it truely has spread its tentacles to a form of savage husbandry perpetrated against the people......
The very vastness of the scale of this fraud is the reason it can be doubted, though the evidence is plentiful for its existance and effects of the predation upon us.

while being too lazy to look it up, does GM stock pay a dividend? If so, who/where does that go within the Government-owned shares?