Last post on Dec 22, 2012 at 8:06 PM
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#4021 of 4024 Feds cutting their losses on GM
Dec 19, 2012 (9:22 pm)
We will officially start losing 50% of our investment in GM by the end of the year.
Uncle Sam Books 50% Loss As Government Motors Buys Back 200MM Shares From Tim Geithner
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
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.
#4022 of 4024 be like Buffett?
by steve_ HOST
Dec 21, 2012 (6:03 am)
"As told in "Overhaul," Rattner's book about the bailouts, it was Wilson who concluded that GM's obligation to the U.S. Treasury would have to be "equitized" -- in the form of stock rather than loans -- or else GM would sink under the burden of too much debt.
"I thought GM was dirt cheap a year ago and the stock is up 38% since then, and I still think it's attractive," he wrote."
Architect of GM bankruptcy says stock is undervalued (Detroit Free Press)
#4023 of 4024 Re: be like Buffett? [steve_]
Dec 21, 2012 (7:05 pm)
Since I think the gov doesn't directly loan, but rather guarantees the loan, it may have ridden on what interest rates the lenders would have required. Remember, a lot of banks were in a crisis back then too and liquidity dried up.
#4024 of 4024 Re: Feds cutting their losses on GM [gagrice]
Dec 22, 2012 (8:06 pm)