The final tally on the cost of the US auto industry bailout is in. With the recent sale of shares of Ally Financial, the Feds invested $79.69 billion to keep GM, Chrysler and their financing divisions afloat and recouped $70.43 billion – a net loss of $9.26 billion. However, in the government's official numbers it lost $16.56 billion because the smaller number factored in interest and dividend payments. The total was still far less red ink spilled than some estimates predicted.
Apparently, the cost of the US Treasury's bailout of General Motors is still being calculated. A new report from the Special Inspector General for the Troubled Asset Relief Program, which oversees the TARP initiative, found that the US government has lost more money on its investment than previously believed.
One would expect that as the CEO of one of the largest automakers in the world, the pay would be pretty darn competitive. And for the just-announced incoming CEO of General Motors, Mary Barra, the financial compensation package could well be substantially rosier than it was for her predecessor. That's because she'll be the first exec at the company's helm since the federal government sold off its remaining interest in the company earlier this week.
When we last checked the status of the federal government's stake in General Motors in September, it owned about 7.3 percent - roughly 101-million shares worth about $3.7 billion - of the automaker. In October, the Fed sold almost a third of its remaining stake, or 29- to 30-million shares valued at about $1.2 billion, The Detroit News reports. Currently the government owns around 71-million shares.
Some things are never as they seem. That's especially true when talking about the bankruptcy of General Motors. From afar, it's easy to look at GM's issue being one of decades of mismanagement, poorly built cars, and a certain, too-big-to-fail mindset. But closer to the situation, as the Detroit-based company was well and truly spiraling out of control in 2009, there was much more that the public wasn't able to notice.
The US Treasury has announced a $9.7 billion loss on the $49.5 billion it used to bailout General Motors in 2009, according to a report from the The Detroit News, which in turn cites the quarterly report from the Special Inspector General of the Troubled Asset Relief Program to Congress.
The US Treasury's sale of General Motors stock continues, with the unloading of more than 110 million shares between May 9 and September 13 netting the government agency $3.82 billion and reducing its stake in GM to 7.3 percent, Reuters reports. The Treasury also confirmed that it now holds 101-million shares, which are on track to be sold by March 2014.
100 retired executives from General Motors will soldier on with smaller pensions after a trio of judges in the Sixth Circuit Court of Appeals in Cincinnati, ruled in favor of the automaker. The dispute stemmed from the requirements made by the Obama administration as part of GM's bankruptcy and restructuring, according to a report from The Detroit News.
Canada's federal government and the government of the province of Ontario have started searching for an investment bank to sell the rest of their combined 140 million shares in General Motors, according to an unidentified source, Bloomberg reports. That represents a 10-percent stake up for sale. The news doesn't come as a surprise because Finance Minister Jim Flaherty said in December that Canada wanted to sell its shares of GM stock, a point that was reiterated yesterday by one of his spokespeo
Special Inspector General Christy Romero has delivered another report to Congress on the state of the Troubled Asset Relief Program (TARP) up to June 6 of this year, assessing numbers to the US Treasury's remaining stake in General Motors. After stock sales in February and another a few months later, the Fed is still the owner of 14 percent of GM, totaling 189 million shares, and is $18.1 billion in the hole after the $49.5 billion loan to the automaker. Although the share price has risen more t
Two days after a Congressional hearing about a US Department of Energy loan to Fisker Automotive, Bob Lutz wrote a column pondering what should be done to stop the financial hemorrhaging at the company that builds – well, used to build – the Karma extended-range sports car. When Lutz was vice chairman at General Motors, a federal bailout kept that company's factories open and helped bring the Chevrolet Volt to market. So, should the same sort of logic be applied here and Fisker given
The saga of the U.S. Treasury's involvement with General Motors has become the theater of call and response: the call is Treasury announcing how much it stands to lose on its bailout of GM, the response is a turgid chorus of "Government Motors!" and "They should have died!" peppered with a few defenders trying to make themselves heard. Well, here we go again, since the latest Treasury report filed states that it stands to lose $25.1 billion on the 500 million shares of GM stock it still owns.
After 103 years of stratospheric heights and immeasurable lows, General Motors Corp. has died. Motors Liquidation Co., or "Old GM," as it became known during the 2009 bankruptcy reorganization, was quietly dissolved on Thursday, Dec. 15, taking the company's bad debts and liabilities along with it.
Former United States Vice President Dick Cheney didn't hold back when it came time to write his memoir of his time in office. Cheney has taken shots at everyone from Colin Powell to Condoleezza Rice, and according to The Detroit News, the VP wasn't thrilled about the idea of pulling General Motors out of financial dire straits. The memoir reveals that Cheney would have preferred that the Bush Administration hadn't bailed out General Motors with a $13.4 million rescue package and that he was disa
According to The Wall Street Journal, Chrysler's post-bailout restructuring allowed it to effectively erase any responsibility for car accident victims. Two years after the $12.5-billion auto industry bailouts, families like the one Vicki Denton left behind are stuck between a rock and a hard place.
The Congressional Oversight Panel charged with overseeing America's $700 billion federal bailout fund admits that it still isn't sure if the measure will save the auto industry in the long run, The Detroit News is reporting. As you'll recall, the $700 billion was divvied up between banks, insurers and General Motors and Chrysler, among others.
According to The Detroit News, the United States Treasury Department is planning on quickly eliminating its shares of General Motors stock rather than trying to maximize the government's return on its investment. The news comes from Austan Goolsbee, chairman of the Council of Economic Advisors, who said that the government is interested in quickly shedding its 33 percent stake in the automaker due to the fact that it never wanted to be a shareholder in the automaker to begin with. The Detroit Ne