Taxpayer looting and raping continues for GM's benefit
Factbox: Taxpayers in deep water on GM investment
Thu Nov 18, 2010 3:44pm EST
(Reuters) - General Motors Co may have the world's biggest initial
public offering, but U.S. taxpayers were more than $9 billion underwater
on the government-funded restructuring at its current share price on
A breakdown of the paper loss follows.
* The U.S. Treasury loaned GM about $49.86 billion from late 2008
through 2009 to restructure the company and finance its move through
bankruptcy and beyond.
* Before accounting for the Treasury proceeds from the IPO, GM had
repaid about $9.74 billion to the government. Those repayments included
unused loans, the purchase of Treasury preferred shares, and dividends
and interest. That left taxpayers owed a little more than $40.1 billion.
* Including overallotments, Treasury will recover more than $13.6
billion by selling 412.3 million common shares, leaving taxpayers owed
about $26.5 billion. Treasury would need to sell its remaining 500.1
million share-stake at an average price of about $53 for taxpayers to be
* With GM shares trading at $34.50 Thursday afternoon on the New York
Stock Exchange, taxpayers were facing an $18.50 per-share deficit on
their remaining stake, or about $9.25 billion.
SOURCES: Treasury public reports, GM SEC filings
"I have tried to live my life so that my family would love me and my
friends respect me. The others can do whatever they please."
Click to see the full signature.