American Taxpayers will lose at least $10 BILLION on the GM bailout (which incidentally took money from my Mother and gave it to United Auto Workers). Both you and I know that the real loss is likely more than $10 BILLION.
Washington — The U.S. Treasury said Wednesday it plans to sell 30 million additional shares of General Motors stock in a new public offering in conjunction with GM’s return to the S&P 500 index on Thursday.
The United Auto Workers Retiree Medical Benefits Trust — which holds about 14 percent of GM — will also participate by selling 20 million shares, making the total offering size 50 million shares. It represents about 12 percent of Treasury’s outstanding GM stock.
The move may mean that Treasury completely exits in 2013, rather than by the end of March 2014. The return to the S&P will prompt significant demand for GM shares and the stock has recently traded near its highest level since February 2011. GM is filing a new prospectus ahead of the sale.
The Treasury sold nearly 20 percent of its remaining shares in General Motors Co. in the first three months of the year, the Detroit automaker disclosed Thursday.
The Treasury, which initially held 60.8 percent of GM as part of the U.S. $49.5 billion bailout, now owns just 16.4 percent, or 241.7 million shares. In December, the Treasury sold GM 200 million shares of its stake for $5.5 billion to reduce its stake to 300 million shares.
In total, Treasury has recouped $30.6 billion. At current trading prices, Treasury would lose around $10 billion on its GM bailout. Read more at Detroit News
Buying GM stock is near traitorous, in my opinion.
1) Shafting Ford and taxpayers as GM receives the gift of an $18 BILLION tax credit. Obama announced the biggest profit for GM in its 100-year-history, BUT…dealer inventories loaded with an 89 day inventory (channel stuffing). GM back to old tricks.”
2) Government Motors (GM) announced $400 million in bonuses after only two years of filing bankruptcy and being bailed out me and you.
3) The House Energy and Commerce Committee found another $5 Billion tucked into the Affordable Care Act (ObamaCare) given to unions, state public employees and “big” corporations to pay for early retirement – $2 Billion of which has already been paid out – or more. Along with the UAW and major corporations, the states of California, Ohio, Georgia, New York and Texas have received millions. But the United Auto Workers is #WINNING – and received more than the states of New York, California and Texas combined.
4) Organized Slackers:
Along came Steve Miller in 2005, a “turnaround” specialist, who told Americans just how cushy UAW workers actually had it, and he warned America that these policies would not work.
We cannot continue to pay $65 an hour for someone to cut the grass and remain competitive.
Miller meant, literally, “cutting the grass.” Henry Payne wrote:
Take grass cutting. As defined by the current United Auto Worker contract negotiated with the “Big Five” (GM, Ford, Chrysler, and top parts makers Delphi and Visteon), an auto “production worker” is a job description that covers anything from mowing grass to cleaning the toilets. In the real world, these jobs would be outsourced to $8 an hour, no-benefit wage earners, but on Planet Big Five, these jobs get the same wages as any auto line-worker: an average $26 an hour ($60,000 a year) plus benefits that bring the company’s total cost per worker to a staggering $65 an hour.
But at least the grass cutters are working for their pay. The UAW contract also guarantees that 12,000 autoworkers get full wage for doing nothing. On the heels of Miller’s straight-talk, theDetroit News reported that “12,000 American autoworkers, instead of bending sheet metal, spend their days counting the hours in a jobs bank.” These aren’t jobs. And they certainly aren’t being “lost” to China.
5) Remember the UAW contract – 2,215 pages weighing 22 pounds, or why American automakers can’t compete?