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Those workers have been very well rewarded for years, many times too well rewarded which is part of the reason GM was failing in the first place. Call me old fashioned but if you need to borrow money from the gov. to stay in business nobody working at that company deserves a reward.
Agreed. I won't call you old fashioned since Dude claimed that name for himself.
IMPOSSIBLE. The old GM shares were cancelled and a new IPO was issued for the new GM shares. You could NOT still own 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.
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.
The IPO for the new GM was closed to a select group of investors. I tried to purchase shares in the old GM back when this all went down. The markets shut down trading because people thought they were buy the NEW shares and not the old worthless shares. I lost over $2000 on people pumping the worthless shares.
And how long has it been since you were complaining about President Obama capping bonuses? Or, do you complain about asking for a cap if those involved are Wall Streeters and you complain about letting workers get bonuses since they are... workers.
OK, let's make sure we're on the same page here, because it appears that some posters on this thread don't understand what the GM bailout was about and don't understand some basic accounting principles.
There were two parts to the GM bailout - roughly $7 billion in the form of a loan out of TARP funds, and roughly $43 billion that was used to purchase equity in the corporation in bankruptcy. That $43 billion is not a loan. It's an investment, even though it had the effect of providing GM with much needed capital.
GM has paid back the loan they took from the government, but they have not bought back the equity the government put in. The government could theoretically sell those shares to another private entity for cash (though they probably will not, and I don't know about any particular rules applied to the stock series the government got). If GM bought back the stock, they would have to pay the government the market value of the stock on the day they buy them back.
The shares the government owns in GM are worth more today then they were when the government bought them. That means they currently have a profit. They might not have a profit if and when they sell their shares. The government can only realize a gain or loss on the day they sell their equity interest. GM does not currently have an outstanding debt to the government. They do not owe the government anything until they decide to buy back the shares of GM stock the government owns.
Just making sure we're on the same page at this point, because some don't seem to be able to understand all this here.
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.
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.
Surely you realize what was meant by that statement about them having to pay income taxes. chielgirl sounded like she didn't think it was fair for them to have to pay income taxes on their bonuses. Hell, their jobs were saved by the government. Their union was given all that control of the company and the bondholders were screwed, all by the government and then the government appointed the head men to run the company for the government.
Why would a company contoled as you say by the UAW give so many bonuses to the salary employees?
Until taxpayers are paid back, no none should get a bonus.
And how long has it been since you were complaining about President Obama capping bonuses? Or, do you complain about asking for a cap if those involved are Wall Streeters and you complain about letting workers get bonuses since they are... workers.
Workers? I wonder if each and every one is a UAW member and if it wasn't the UAW that Obama was really working for in the beginning of all this.
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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. 
