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The company got $50 billion from our government, and $10 billion more from Canada. They have paid the U.S. back $7 billion plus interest, as I understand it, including the latest payment of nearly $5 billion. So they say they paid us back.
Not quite: That still leaves $43 billion.
The $43 billion is NOT a loan it's in equity i.e. stock. Considering the value the government paid for the stock and GM's current growth prospects the U.S Government will probably walk away with a profit.
The $43 billion is NOT a loan it's in equity i.e. stock. Considering the value the government paid for the stock and GM's current growth prospects the U.S Government will probably walk away with a profit.
It is money from the US treasury, that has not been repaid. You have no basis for thinking we will walk away with a profit.
Quick question...my GM shares I bought back in 2004. They're worth 36 a share according to the ticker, right? Sweet!
I'm going to sell them right after I sell my GM bonds.
I'll let you know how it goes.
You took a risk and you lost. Personally I have to ask what were you doing buying GM bonds or stock in 2004? The company was hemorrhaging cash and even back then. The health care cost and increasing debt were concerns in the financial community.
But I guess it’s easier to get pissed off at the government than to say you made a bad investment decision.
It is EASY to make a profit when you can shift your legacy pension obligations to the US taxpayers and stiff your creditors under the guise of "New GM".
I don't understand. How can you cancel shares and still be in business? Must be some sort of new accounting rules. I'm sure they'll give me my money back. I have legitimate shared from almost 10 years ago. I'll be fine.
It happens all the time when companies go into bankruptcy. Those are not new accounting rules they are rather old.
In bankruptcy, equity is on the lowest rung of the ladder for absolute priority. Equity holders cannot be paid anything until secured and unsecured creditors get repaid on their debts in full. What that means is that a lot of the time in corporate bankruptcy the bondholders get wiped out.
What you say here is very true but does GM have any shareholders who aren't the government? If they do and they are paying them any kind of money for their share ownership surely they would have to pay the government the same amounts BEFORE they distribute bonuses to the UAW workers. I don't want any stock anywhere that doesn't share its profits with its stockholders. I am very glad that my share of Government Motors is only my tax money they used to save the UAW buddies of Obama.
That is entirely the prerogative of the board of directors as how dividends and employee bonuses are awarded. If GM shareholders want a dividend it is incumbent upon them to bring that issue up with the board of directors.
"The company needed a $49.5 billion government bailout to survive a mid-2009 bankruptcy filing, and the government still owns 25 percent of GM's stock. Chrysler, which needed a $12.5 billion bailout, plans to pay bonuses as well. The government owns about 9 percent of Chrysler stock."
The stake in either company does not represent a controlling interest. Therefore the board of directors is free to make decisions in regard to worker bonuses. If the stocholders are REALLY outraged about this they need to organize a significant number of shareholders and bring this issue to the board.
It's actuallhy healthy in the long run to give workers bonuses. It gives workers the incentive to be productive. Too bad more companies don't give worker bonuses, espeicially in light of stock options and other executive compensation that goes on in many corporations.
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Must be some sort of new accounting rules. I'm sure they'll give me my money back. I have legitimate shared from almost 10 years ago. I'll be fine. 
