Gm wants out of gov't; obama says no

[Locutus]

General Motors pushing U.S. to sell stake: report

CHICAGO (MarketWatch) -- The Treasury Department is resisting General Motors' push for the government to sell off its stake in the auto maker, The Wall Street Journal reports. Following a $50 billion bailout in 2009, the U.S. taxpayers now own almost 27% of the company. But the newspaper said GM executives are now chafing at that, saying it hurts the company's reputation and its ability to attract top talent due to pay restrictions. Earlier this year, GM GM -1.41% presented a plan to repurchase 200 million of the 500 million shares the U.S. holds with the balance being sold via a public offering. But officials at the Treasury Department were not interested as selling now would lead to a multibillion dollar loss for the government, the newspaper noted.

General Motors pushing U.S. to sell stake: report - MarketWatch

 

[tay]

Well, a smart decision by the treasury to not lose money.

But officials at the Treasury Department were not interested, as selling now would lead to a multibillion-dollar loss for the government, the newspaper noted.

General Motors pushing U.S. to sell stake: report - MarketWatch

 

[petros]

Canada owns 20% too.

 

[TenPenny]

I would think that the best way for GM to do that is to guarantee a 15% return on investment.

Gov't shouldn't be forced to sell at a loss.

 

[Walter]

Canada owns 20% too.

Got a link?

Well, a smart decision by the treasury to not lose money.

But officials at the Treasury Department were not interested, as selling now would lead to a multibillion-dollar loss for the government, the newspaper noted.

General Motors pushing U.S. to sell stake: report - MarketWatch

Yeah, keep the stock pricee depressed by keeping the company in guvmint hands.

 

[IdRatherBeSkiing]

Yeah, keep the stock pricee depressed by keeping the company in guvmint hands.

So what? Why should the govt sell for a loss just to help some rich stockholders?

And for the record, they shouldn't have been shareholders to start with -- the company should be bankrupt -- but since they did the bailout and they gave GM the money, it is their right to be stockholders. And now that they are they shouldn't be forced to lose money.

 

[Walter]

So what? Why should the govt sell for a loss just to help some rich 
stockholders?

Lots of stock holders are pension funds.

And for the record, they shouldn't have been shareholders to start with -- the 
company should be bankrupt

.

I agree the guvmint should have stayed out of it.

 

[L Gilbert]

lol Didn't hear GM snivelling when the gov't bailed it out.

 

[Kreskin]

Looks like there will be lots of money to be made. Guvmint rescue worked well.

 

[EagleSmack]

GM wants the Govt out? LOL. They're in baby... they aren't getting out. You wanted the bailout and you got it... wear the albatross proudly boys!

This kind of reminds me of an article I read about a biker gang starting to hang out at a certain bar in the Boston area. The Massachusetts State Police took notice and told the owner...

"Don't let them in here... they will have this place taken over and you'll never get rid of them."

... he either didn't listen or was too afraid and they did take over the place.

 

[TenPenny]

Canada owns 20% too.

'
Actually, it's 11.7% owned by the governments of Canada and Ontario.

 

[Highball]

GM is no longer an American icon powerhouse. Now 70% of their vehicle line is produced off shore and they have launched a huge operation in quick loans, questionable lending practices, another insurance arm (The General) and also their Mortgage business is now in fiscal trouble too. I hope they go down in flames along with the big banks and money lenders. Hopefully WFB will be close behind too.

 

[Walter]

'
Actually, it's 11.7% owned by the governments of Canada and Ontario.

Got a link?

 

[EagleSmack]

I was listening to the radio and they said the US Govt. owns 25% of GM.

Now GM wants the US Govt. to sell off their shares?! GOOOOOD LUCK with that!

 

[damngrumpy]

I don't think the government should get out period. I don't think the car companies or
any other company should continue to pay out ridiculous amounts of money to some
of its top people. Remember we the public pay for those outrageous salaries in the
price of the product It is time to limit the salaries and benefits the same as those in
the hockey and basketball leagues. Enough is enough.

 

[Bar Sinister]

Got a link?

Ottawa doesn't regret GM bailout - Windsor - CBC News

Apparently the Canadian government owned 12% of GM in 2010. However, GM may have paid off more to the debt to the government since that time. It is also not clear from the article if the money owed includes the loan given to GM by the government of Ontario.

 

[TenPenny]

Got a link?

Yes, I do.

 

[EagleSmack]

I don't think the government should get out period. I don't think the car companies or
any other company should continue to pay out ridiculous amounts of money to some
of its top people. Remember we the public pay for those outrageous salaries in the
price of the product It is time to limit the salaries and benefits the same as those in
the hockey and basketball leagues. Enough is enough.

Which is why GM wants the Feds out. They now must answer to the Govt. on salaries and the US Gov has a say on who gets paid what. GM has said as much in their request for the US Govt. to sell their shares... they cannot attract the people they want which translates to me that they can't give themselves massive pay raises. IMO

I am glad the US Govt. is going to hold on to their shares.

 

[The Old Medic]

In order for the US Treasury to make any money off of the "stock" it holds, the per share price would have to go up to 5 times what it is today.

The government will NEVER get its money back, and they knew it at the time.

 

[TenPenny]

In order for the US Treasury to make any money off of the "stock" it holds, the per share price would have to go up to 5 times what it is today.

The government will NEVER get its money back, and they knew it at the time.

Indeed, although you'll find people claiming that 'GM has paid back the money borrowed from the gov't' with a straight face.