Did the government waste $9 billion?

Big Money

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The U.S. government has booked a loss of $9.7 billion on the nearly $50 billion bailout of U.S. automaker General Motors, according to a quarterly report to Congress on Tuesday.

In 2009, the U.S.Treasury extended $49.5 billion in loans to GM in exchange for $2.1 billion in preferred stock and a 60.8 percent equity stake.

Treasury has since whittled down its stake in GM through a series of stock sales. Those sales have all taken place below the price Treasury needed to break even on its GM investment, resulting in the loss, according to Tuesday's report from the Special Inspector General overseeing the $700 billion Troubled Asset Relief Program.

Treasury has sold its preferred stock and reduced its equity stake to 7.3 percent. Treasury owns 101.3 million GM shares as of September 26, the most recent date available.

The U.S. government has said it plans to sell its remaining GM shares by April 2014. Some analysts said Treasury could even unwind its position by year end.

The exit of Treasury will eliminate the stigma of government ownership that has hovered over the automaker since the bailout, which prompted some critics to dub the company "Government Motors."

Yes, it did. The government sent pallets of shrink-wrapped currency to Iraq back in 2003-04 and it was gone with the wind. It was $12bn, not $9bn.
Did the government waste another $9 billion on the GM bailout?

Doesn't seem like it.

The company has reported annual profits since 2010. It can carry forward previous losses to reduce tax liability on future earnings. It earned $4.7 billion in 2010. The Wall Street Journal estimated the tax break, including credits for costs related to pensions and other expenses can be worth as much as $45 billion over the next 20 years.[SUP][35][/SUP]

In 2010, General Motors ranked second on the list with 8.5 million units produced globally.[SUP][36][/SUP] In 2011, GM returned to the first place with 9.025 million units sold worldwide, corresponding to 11.9% market share of the global motor vehicle industry. The top two markets in 2011 were China, with 2,547,203 units, and the United States, with 2,503,820 vehicles sold. The Chevrolet brand was the main contributor to GM performance, with 4.76 million vehicles sold around the world in 2011, a global sales record.[SUP][37][/SUP]

In May 2013 during a commencement speech, CEO Dan Akerson suggested that GM was on the cusp of rejoining the S&P 500 index. GM was removed from the index as it approached bankruptcy in 2009.[SUP][38][/SUP]
I want to see how it looks in April 2014 when they've completely divested.

LOL, I bet you do...kicking the can down the road seems really popular with Democrats just now, doesn't it?

LOL, I bet you do...kicking the can down the road seems really popular with Democrats just now, doesn't it?

<snip annoying smiley>

Whereas cons didn't want the government in the auto business in the first place because it was "socialism, now the gov's trying to divest and it's "wasteful."