Taxpayers take 50% loss in GM as Geitner sells 200mm shares back

[BudBro 182]

from zerohedge.com, news from Dec 19, 2012

 

General Motors today said it will purchase 200 million shares of GM common stock held by the U.S. Department of the Treasury for $5.5 billion, or $27.50 per share. The share buyback is part of the Treasury’s plan, also announced today, to fully exit its entire holdings of GM stock within 12 to 15 months, subject to market conditions.

 

Assuming a price in the $27.50 range, this implies a nearly 50% loss on the government's breakeven price of $54. So much for the "profit" spin. One hopes all those Union votes were well worth the now booked $40+ billion cost to all taxpayers.

 

in other news....BOA is holding off on foreclosing on $64B worth of home loans to keep housing market propped up.

 

"Bank of America Corp. has amassed $64 billion of mortgages that are at least six months delinquent and have yet to enter foreclosure, more than twice the amount held by its four largest competitors combined." $64 billion is more than half the market cap of Bank of America as of this moment.

 

in more other news...UBS fined $1.5Billion in the LIBOR cheating scam

 

Just as with Barclays, the UBS traders (who combined their LIBOR submission and proprietary trading units from 2005 to 2009) used hints and suggestions and requests for "market color" to ensure fixes were exactly where they needed them up and down the curve. The quotes and hubris are entirely damning and also show a totally willful disregard for capture (especially following a discussion of the mainstream media noting 'odd' LIBOR quotes during the crisis). This went from top to bottom in the organization, summed up perfectly in this one exchange: "...It is highly advisable to err on the low side with fixings for the time being to protect our franchise in these sensitive markets. Fixing risk and PNL thereof is secondary priority for now."

 

A $1.5bn fine. Sounds like a lot but in relation to the trillion dollar derivative markets hanging on every tick and reset from this now-proven-to-be-entirely-false market, it seems a fine is too easy.

[TimmySmith 2,782]

One hopes all those Union votes were well worth the now booked $40+ billion cost to all taxpayers.

Wasn't just votes. The Democrats laundered taxpayer money through the Unions back to into the campaign. You think 20 Billion just disappeared?

[BudBro 182]

You think 20 Billion just disappeared?

no, i think trillions have been stolen under this and the previous administrations.

[Phurfur 70]

On the campaign trail, Barack Obama’s signature definition of “success” is the government bailout of General Motors. “I said I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back,” he told an audience in Pueblo, CO

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a new Treasury report forecast that losses for GM were expected to reach $25 billion,

 

http://frontpagemag.com/2012/arnold-ahlert/obamas-gm-success-story-headed-for-bankruptcy/

 

More Lefty Logic.

[BudBro 182]

More Lefty Logic.

a new Treasury report forecast that losses for GM were expected to reach $25 billion,

+15B more.

[Bruce Benedict 0]

If we can't trust tinfoil hat Wall Street conspiracy theory sites to deliver the goods, who can we trust? Other than Fox News, of course.

[Voltaire 5,316]

Maybe it's for the best. You'd hope GM could have paid back all the TARP money like the banks did. But that day may not come. Having relied on the government and the government still retaining extensive government ownership has been dragging down public perception of GM.

[DankNuggs 305]

Maybe it's for the best. You'd hope GM could have paid back all the TARP money like the banks did. But that day may not come. Having relied on the government and the government still retaining extensive government ownership has been dragging down public perception of GM.

Ya public perception is why their cars are uncompetitive... Lol... Makes zero sense at all, another failtard excuse

[Recliner Pilot 61]

Maybe it's for the best. You'd hope GM could have paid back all the TARP money like the banks did. But that day may not come. Having relied on the government and the government still retaining extensive government ownership has been dragging down public perception of GM.

I won't by a GM or Chrysler product ever again because they were bailed out by the taxpayers. Too any other options out there.

[Frozenbeernuts 2,264]

If we can't trust tinfoil hat Wall Street conspiracy theory sites to deliver the goods, who can we trust? Other than Fox News, of course.

I am skeptical about most the info on here since i dont have much time to look it up myself. Usually when i do i end up at some partisan site that is obviously not objective. That being said, some of this conspiracy stuff has to be true. The problem is determining which. I guess thats why its a conspiracy in the first place.

[Phurfur 70]

I am skeptical about most the info on here since i dont have much time to look it up myself. Usually when i do i end up at some partisan site that is obviously not objective. That being said, some of this conspiracy stuff has to be true. The problem is determining which. I guess thats why its a conspiracy in the first place.

 

Don't be afraid to see what you see.

[BudBro 182]

I am skeptical about most the info on here since i dont have much time to look it up myself. Usually when i do i end up at some partisan site that is obviously not objective. That being said, some of this conspiracy stuff has to be true. The problem is determining which. I guess thats why its a conspiracy in the first place.

the info in the OP was from this site... www.zerohedge.com ...

 

it's a site worth visiting daily. some of it is complicated, some not. but, it brings financial news you won't see on your local news.

[SUXBNME 1,503]

You know the beauty of this is all of the payback money is just going back into the 700 billion + TARP slush fund to be redistributed whenever Geithner sees another charity case.

AMERIKA !@#