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GM hasn't offered plan for government sell-off

Tennessean / Detroit Free Press -- The U.S. government eventually will liquidate its ownership stake in General Motors, but the automaker has not proposed an official plan for the Treasury Department to sell off its shares, a source familiar with the discussions said.

The Wall Street Journal reported Monday that the Treasury Department rejected GM’s request earlier this year to offload its remaining stake with a combination of a public offering and a GM share buyback plan. The government still owns about 32% of GM’s common stock, but its stake would fall to 26% if all outstanding warrants were exercised.

If the government sold its remaining shares at Monday’s price of about $24, taxpayers would lose more than $15 billion on the $49.5 billion GM bailout. The Treasury Department wants the stock price to creep higher to redu


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Submitted Sep 19, 2012 By: DellDude2
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: GM hasn't offered plan for government sell-off Back to Topics
REPLIES (newest first) Post a Reply
shstew
Champion Author British Columbia

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Message Posted: Sep 20, 2012 8:18:19 AM

ok
alex395
Champion Author Louisville

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Message Posted: Sep 20, 2012 7:41:50 AM

Bankrupt companies should go bankrupt not be bailed out by the Illinois mafia.
jrs4125
Champion Author Indiana

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Message Posted: Sep 20, 2012 6:43:23 AM

And whats new if you are part of the 1% ?
tomok
Champion Author Portland

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Message Posted: Sep 20, 2012 5:13:32 AM

Repay ALL the taxpayer money GM, it's Not yours to keep! If GM can't sell enough cars and trucks with a decent profit, copy what other successful car manufacturers are doing! This isn't rocket science GM!
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money.
The price of fuel at the pump is too high!
12/22/2012!
geminijax
Champion Author Jacksonville

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Message Posted: Sep 20, 2012 12:42:37 AM


BennoBlue: "You don't have to be a financial genius to know that you don't sell when the stock is going up."
LOL! I've been an investor for over 20 years now & haven't done too badly. When the stock price is rising without strong fundamental catalysts, there's a real strong probability of what's known as a blow-off top. The stock takes a dive after that. Professionals will take profits along the way as the stock price is rising or hedge using options, to mitigate their risk. The amateur will participate in the ride up AND the ride down!

"But I guess it's more important to him to take a loss than to do what he can for the economy."
Really? If there aren't strong fundamental catalysts to propel the stock price higher, then selling is for cutting one's losses, not merely taking a loss for the sake of taking a loss.

"Since much of his income has come from stock, it can't be because such a basic principle is unknown to him..."
Quite right! You may want to think about that a few more times!
tedjm1
Champion Author New York

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Message Posted: Sep 19, 2012 11:28:47 PM

If they sold, as per Romney, only taxpayers would be hurt. Wealth would feel nothing.
boatmen
Champion Author New York

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Message Posted: Sep 19, 2012 11:27:27 PM

Hello it's Thursday
BennoBlue
Champion Author Virginia

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Message Posted: Sep 19, 2012 11:26:50 PM

As it says in the article, GM's stock has increased value by 25% since July, so why would it make sense to sell now? You don't have to be a financial genius to know that you don't sell when the stock is going up.

Romney's talked about dumping the stock, and that's exactly what it'd be to sell while the price is increasing -- deliberately taking a loss, or more of a loss than necessary. But I guess it's more important to him to take a loss than to do what he can for the economy. Since much of his income has come from stock, it can't be because such a basic principle is unknown to him...
crreed1
Champion Author West Virginia

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Message Posted: Sep 19, 2012 11:23:06 PM

ok
rollercoaster
All-Star Author Hartford

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Message Posted: Sep 19, 2012 11:22:28 PM

that ain't right !!!
12766
Champion Author New York

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Message Posted: Sep 19, 2012 11:21:11 PM

OK
OGW
Champion Author London

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Message Posted: Sep 19, 2012 11:19:11 PM

GM can't afford to buy back the stock even at the low price because of their mismanagement.
RENEGADEGAS
Champion Author Missouri

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Message Posted: Sep 19, 2012 11:18:14 PM

The bailouts were a bad idea from the start and continue to be a pain in the sides of American taxpayers.
boatmen
Champion Author New York

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Message Posted: Sep 19, 2012 11:18:07 PM

Real slow news day
Gassed01
Champion Author Toronto

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Message Posted: Sep 19, 2012 11:18:00 PM

They need to sell more Volts to the army.
cheapertvs
Champion Author Richmond

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Message Posted: Sep 19, 2012 11:17:59 PM

Sounds like the government is looking out for the tax payer....
mfeldstein
Champion Author Ottawa

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Message Posted: Sep 19, 2012 11:17:07 PM

Days old news.
joel27nc
Champion Author Raleigh

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Message Posted: Sep 19, 2012 11:16:50 PM

Time may tell.
granitestater
Champion Author New Hampshire

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Message Posted: Sep 19, 2012 11:16:29 PM

This is Obama's idea of a success story. I don't wanna know what he thinks a failure would look like...
Bigwaynef
Champion Author South Carolina

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Message Posted: Sep 19, 2012 11:16:21 PM

I wanna know whats going on in China with GM there...
LanguageMan1
Champion Author Tampa

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Message Posted: Sep 19, 2012 11:16:00 PM

Why would there be any selling while prices for the stock are low. It makes sense. You sell at a profit.
bridgerunner
Champion Author Virginia

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Message Posted: Sep 19, 2012 11:15:43 PM

The taxpayer is the big loser.
arb0526
Champion Author Greensboro

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Message Posted: Sep 19, 2012 11:14:25 PM

as long as money is flowing freely would you be eager to stop it?
Martinman
Champion Author Mississippi

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Message Posted: Sep 19, 2012 11:14:09 PM

The above figure is nothing more than a 'paper loss'.

Second, the potential lost to the federal government was initially forecast to be more than $40 Billion.

Third, the loss to the fdederal government alone, of a failure by either Chrysler or General Motors would have dwarfed the above paper loss.

What do you think the impact would have been as a result of the loss of up to 2.9 million jobs?

What do you think the impact would have been as a result of the loss of income tax revenue not just the federal government, but to state, county, and local municipalities?

What would the loss have been to the federal government's Pension Benefit Guaranty Corporation, that the taxpayers would have been on the hook for?

What would have been the cost to state governments in terms of unemployment and food stamps?

What would have been the cost to the federal government for Medicare and Medicaid?

What would have been the costs the thousands of businesses, from the bankurptcy failures of hundreds of auto parts suppliers?

Even at $50 BILLION, the cost was significantly less, compared to the alternative.

.
Hi1
Champion Author Ontario

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Message Posted: Sep 19, 2012 11:13:41 PM

Old news.
CDMAuto
Champion Author Connecticut

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Message Posted: Sep 19, 2012 11:12:54 PM

yep!
yakstar
Champion Author Montreal

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Message Posted: Sep 19, 2012 11:12:01 PM

whatever...
Redcarn
Rookie Author Indianapolis

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Message Posted: Sep 19, 2012 11:11:22 PM

GM will not post a profit as long as the government owns a part of the company.
rahcat
Champion Author Grand Rapids

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Message Posted: Sep 19, 2012 11:09:49 PM

Should have never gotten involved with this in the first place.
starfighter08
Champion Author Illinois

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Message Posted: Sep 19, 2012 11:06:59 PM

I would never want buy a GM vehicle.

GM = Gov't Motors

Defination of an elephant, a mouse built to Gov't specifications.
ManOfLeisureII
Champion Author Philadelphia

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Message Posted: Sep 19, 2012 11:06:26 PM

We'd need the price to be over $50 per share to recover all the bailout money GM got. At the current price of $21, we are a long way off.
1fulltank
Champion Author Buffalo

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Message Posted: Sep 19, 2012 11:06:23 PM

Old article.
NoGas714
All-Star Author Indiana

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Message Posted: Sep 19, 2012 11:06:07 PM

Problem is, since everyone in this country is so broke. If they were to sell, it would likely have a foreign buyer.
OGW
Champion Author London

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Message Posted: Sep 19, 2012 11:06:06 PM

Hopefully the government will hold onto the stock until China buys it and the price goes up then the government can recover taxpayers money because as long as the present GM execs are running GM, the people will never get back all their money and if Romney gets in, the people will never recover any of the taxpayers bailout money.
bvrbill
Champion Author Eugene

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Message Posted: Sep 19, 2012 11:04:41 PM

I wont buy another GM vehicle.

[Edited by: bvrbill at 9/20/2012 12:06:35 AM EST]
pepinoNC
Champion Author Raleigh

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Message Posted: Sep 19, 2012 11:04:30 PM

Romney said he would sell at a loss, why isn't anyone supporting that?
cheapchickKY
Champion Author Lexington

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Message Posted: Sep 19, 2012 11:03:41 PM

What's the hurry?
Ray_10589
Champion Author New York

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Message Posted: Sep 19, 2012 11:03:21 PM

was not a good idea
Cellsite
Champion Author Appleton

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Message Posted: Sep 19, 2012 11:03:18 PM

Yuk
jimpricehunter
Champion Author Dallas

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Message Posted: Sep 19, 2012 11:02:56 PM

The founding articles of this nation make it pretty clear that the government was never supposed to become involved in running or purchasing and trading private businesses. Well Barack Obama is certainly not the first president to violate that founding premise but no one has done so in such a grand blatant fashion as him!
radiorumor
Champion Author Texas

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Message Posted: Sep 19, 2012 11:02:44 PM

See, this was a bad idea
BAMBAM197105
All-Star Author Pennsylvania

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Message Posted: Sep 19, 2012 11:02:31 PM

OK
shores4now
Champion Author Kentucky

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Message Posted: Sep 19, 2012 11:00:48 PM

Ok
joeschmo12
Champion Author New York

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Message Posted: Sep 19, 2012 10:55:48 PM

Ha
ExplorerWA
Champion Author Washington

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Message Posted: Sep 19, 2012 10:54:46 PM

They have no need need to sell so why bother.
southrob
Champion Author Tucson

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Message Posted: Sep 19, 2012 10:51:08 PM

and gas still goes up
papa56NC
All-Star Author North Carolina

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Message Posted: Sep 19, 2012 10:48:15 PM

Git-ur-dun
JohnLM
Champion Author Orlando

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Message Posted: Sep 19, 2012 10:47:08 PM

How did thy get into this ess?
gerreg
Champion Author Nebraska

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Message Posted: Sep 19, 2012 10:44:27 PM

OK
WIPACKERFAN
Champion Author Chicago

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Message Posted: Sep 19, 2012 10:42:19 PM

Get to it GM
sammy518
Champion Author Austin

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Message Posted: Sep 19, 2012 10:41:46 PM

ok
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