From CNN’s Money.Com:
Treasury to sell remaining GM shares
By Chris Isidore | December 19, 2012
NEW YORK (CNNMoney) The Treasury Department announced plans to sell the 500 million shares of General Motors it still owns, closing the books on the $51 billion bailout that started four years ago.
Would it be cynical to suggest that the Obama administration waited until after the election was over to do this, so Obama could continue to lie about how he ‘saved GM’ and it didn’t cost the taxpayers a dime?
All through the campaign, and even before, we were constantly told by the news media and the rest of the Democrat Party that General Motors had paid back everything it owed the taxpayers. When, it turns out, they are only going to pay back a little more than half of what was “borrowed.”
The taxpayers are going to lose close to $22 billion dollars on the deal. And $22 billion dollars ‘could feed a lot of hongry chilrun.’
Treasury said GM has agreed to repurchase 200 million shares by the end of this year for $27.50 a share, a 7.9% premium above Tuesday’s closing price. Shares of GM (GM, Fortune 500) jumped 8% in premarket trading on the news.
“This announcement is an important step in bringing closure to the successful auto industry rescue, it further removes the perception of government ownership of GM among customers, and it demonstrates confidence in GM’s progress and our future,” said GM CEO Dan Akerson in a statement Wednesday.
Treasury intends to sell its remaining 300 million shares through various means in an orderly fashion within the next 12-15 months, subject to market conditions. Sales could start as soon as January.
GM started to received the bailout funds in late 2008, with the bulk of the money being used to fund its operations during its 2009 bankruptcy reorganization.
And look how far down CNN buries the bad news. And look how obscurely they put it:
The sale of GM stock is not likely to recover all the tax money the company received. After the repurchase of shares by GM, there will still be $21.6 billion of bailout funds yet to be returned to taxpayers. The average sale price in order for Treasury to break even would be nearly $72, or 182% higher than Tuesday’s closing price.
Oh, is that all? 182%. They are so close. (Sarcasm.)
Still, the bailout saved GM and the many suppliers who depended on it…
BS. GM would and its suppliers would have survived under any normal bankruptcy procedure. Obama’s bail-out only ‘saved’ the UAW. The bondholders, the dealers and the non-union employees all got the shaft.