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.
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
How many people think Buick or GMC should have gotten the axe instead of Pontiac? You can't see it, but I'm raising my hand. Autoweek reports that former Vice Chairman of GM, Bob Lutz, has indicated that things didn't have to e
The United States Treasury has shuffled another 135 to 137 million shares of General Motors stock as it continues its exit from the Detroit-based manufacturer. According to The Detroit News, the July sale netted the government $876.9 million, which was valued between $34 and $37 per share.
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 Brandon Turkus
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 Jonathon Ramsey
Ford isn't the only American automaker that's in the money. General Motors has just reported a second quarter income of $1.2 billion, although that number actually represents a year-to-year drop compared to Q2 2012. This drop can be chalked up to the expense behind launching a new line of full-size pickup trucks (the Brandon Turkus
The next step in the US Treasury's efforts to eliminate its financial interests in General Motors will involve the sale of 30 million shares of the automaker's stock. The government's move to divest itself of GM is all part of a larger plan to sell the remaining 300 million shares of stock it received in compensation for the 2009 bailout of the then-failing automaker. The US Treasury
Reuters reports that earlier this week the US Treasury announced the sale of another tranche of General Motors stock. It didn't say how many of the 241.7 million shares it holds in the automaker it would sell, nor exactly when – the discretion apparently intended to keep hedge funds from profiting from the situation. The government's ownership is broken down into common and diluted
In December, the US Treasury granted General Motors the rights for the company to once again buy corporate jets and for its executives to fly on them, but neither those execs nor the ones at Ally Financial will get any raises this year. Th
In December, the US Treasury announced that it was going to sell all of its shares in General Motors within 12 to 15 months. The first tranche of the 500-million total shares was purchased by GM, which took 200 million of them at $27.50 per share. That price represents an eight-percent premium over the market price at the time. The remaining 300 million shares will be s
It is probably best just to play this down the middle and let you read the excerpt from American Turnaround: Reinventing AT&T and GM and the Way We Do Business in the USA by Ed Whitacre. The author, you'll remember, was the former AT&T CEO who came out of retirement to
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 state
Eight General Motors dealers are being sued by the automaker, which is seeking to revoke their franchises and purchase the dealerships assets in the wake of poor 2011 sales. According to Automotive News, the dealers are among the 700 who filed for arbitration when GM targeted them for closure during its 2009 bankruptcy.
Christy Romero, a special inspector general examining the corporate bailouts that came in the wake of 2008's financial crisis, has some advice for the U.S. government: "Treasury should develop a concrete exit plan for GM and Ally." She is referring, of course, to the 30-percent stake that the government still holds in General Motors and the 74-percent stake it holds in A
2008 was one crazy, almost surreal year. It was the year when the economy took a nosedive, and the U.S. auto industry nearly ceased to exist. One of the last major decisions former President Bush made before he left office was to give Chrysler and General Motors a combined $17.4 billion to keep their doors open.