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The Treasury Department pushes back against General Motors (GM) over its increasing calls to...

The Treasury Department pushes back against General Motors (GM) over its increasing calls to have the government sell its entire stake in the company. The automaker recently proposed repurchasing 200M of its 500M shares from the U.S. with the remaining shares to be sold in a public stock offering, only to see Treasury officials demur as they wait out a higher stock price for GM in order to recoup losses.
Comments (21)
  • TAS
    , contributor
    Comments (1983) | Send Message
     
    Maybe the government wants to insure that there are replacement parts for the thousands of VOLTS they bought once production is halted for lack of interest by everyone else.
    17 Sep 2012, 06:57 AM Reply Like
  • Ted Bear
    , contributor
    Comments (575) | Send Message
     
    Very clever.

     

    Everyone knows that the US Government has become detached form the people, and seems to only serve those that are inside government. What we don't know is where the tipping point is that will signal that the people have had enough of Washington's shenanigans.

     

    Maybe selling our GM shares back to GM for a fraction of the taxpayer cost will toll the moment. It is heinous, arrogant, and most of all, a complete abrogation of the government's responsibility to steward the nations assets.

     

    That the shares should be sold is of no question. The bailout kept GM above water for a while, but they seem to be sinking fast once again. But where is the language, just like there was no language in the bank bailout legislation, that these arrogant bankers couldn't pay themselves HUGE bonuses, that says GM may NOT buy the shares back from the public at anything below the Government's cost or the then current market price, whichever is greater?
    17 Sep 2012, 06:59 AM Reply Like
  • tcbracing
    , contributor
    Comments (255) | Send Message
     
    "...seem to be sinking fast once again."

     

    Where is this information coming from? I agree with Harel that they are on the right track. Seems the Credit Rating companies agree...

     

    "DBRS, Canada’s largest credit rating agency, upgraded GM to BBB (low) from BB (high), citing its robust financial profile due to a strong balance sheet, with low debt, and solid earnings performance over the past two and a half years. DBRS also upgraded Ford Motor to BBB (low), putting both U.S. automakers into investment grade territory."

     

    http://onforb.es/UeHTDD
    17 Sep 2012, 09:21 AM Reply Like
  • caupachow
    , contributor
    Comments (333) | Send Message
     
    I am not sure Harel thinks they are the right track but it seems you are a fan of GM and it's stock. What percentage of it makes up your portfolio? If none are you fixing to load up on it? These questions are rhetorical for only a fool would be buying GM right now, or 6 months ago for that matter.
    17 Sep 2012, 01:19 PM Reply Like
  • tcbracing
    , contributor
    Comments (255) | Send Message
     
    I am a very big fan being a GM salary employee (and my opinions are my own). I am adding percentage every month...

     

    "Due to a modest rise in market shares across the globe, a positive gradual change in the management style (introduced by the new CFO), an offer from China to buy the company's underfunded pension fund, newer products in the market, including energy efficient vehicles, and the CEO boosting his stakes in the company, GM seems an attractive investment."

     

    http://seekingalpha.co...
    18 Sep 2012, 04:41 PM Reply Like
  • Harel
    , contributor
    Comments (17) | Send Message
     
    Just out of curiosity:
    It seems that Detroit is back on tracks.
    If Detroit will be again on the verge of bankruptcy and the government will not help ,what will be the impact on the US economy?
    And what are the other alternatives?
    To tell you the truth:I quite can'"t figure out how the banker bonuses fit in the picture. Can you,please ,elaborate?
    Thank you.
    Harel
    17 Sep 2012, 07:58 AM Reply Like
  • cash
    , contributor
    Comments (442) | Send Message
     
    If you are bailed out every time you screw up, there is no need for you to succeed. If I get paid whether I work or not, hey why work? Just collect the pay check and party.

     

    The govt should try to get the max they can for the shares we own. May be GM can be broken up and mat be the sum of the pieces may be worth more than the whole is now.
    17 Sep 2012, 09:03 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    If GM cared about government "losses", maybe they should have convinced them to dump their ENTIRE stake at the IPO. That was the most those shares were ever going to be worth.
    17 Sep 2012, 08:09 AM Reply Like
  • grgs
    , contributor
    Comments (7) | Send Message
     
    GM stock is already 27% down from the IPO price. Hundreds of millions of shares under government control is a major catch 22. Offer those shares on the open market and the price crashes, keep the status quo and the PR stigma of Government Motors continues.

     

    The only real solution is for this American Icon is to reach way down in to their incredible pool of untapped talent and produce product that is head and shoulders above the competition. I'm betting that they can and that they will.
    17 Sep 2012, 09:10 AM Reply Like
  • SoldHigh
    , contributor
    Comments (1001) | Send Message
     
    Take a big hit now or take a much bigger hit later.
    17 Sep 2012, 09:49 AM Reply Like
  • MgtGuru
    , contributor
    Comments (9) | Send Message
     
    Let's see...the US Govt subsidizes farming to the tune of $8 to $12 Billion annually (just to win farm belt votes) not to mention the massive payouts that will follow this year due to drought and inadequate planning by the farming community which of course leeads to higher prices for comusimers and protection from overseas markets..."bailing out" the autos was a deal
    17 Sep 2012, 09:58 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    two wrongs dont make a right. The corn lobby is ridiculous and it ends up in our bodies and our cars too often.
    17 Sep 2012, 10:03 AM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    So, you think government take overs are 'a deal'? There are still a few of us left that think government has no business in propping up ANY industry. Perhaps you think we should prop up the buggy whip industry? After all, it once represented thousands of jobs! How about facsimile machines, rotary phones, the Post Office?
    17 Sep 2012, 01:03 PM Reply Like
  • MgtGuru
    , contributor
    Comments (9) | Send Message
     
    Individual investor and student of the auto industry
    17 Sep 2012, 09:58 AM Reply Like
  • wolfdude
    , contributor
    Comments (19) | Send Message
     
    What is GM managements plan? Hope and pray???
    17 Sep 2012, 12:26 PM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    No tears for GM! GM could not compete without government support and now they cry they cannot compete with government support. What a cluster of inept management! Let GM twist in the wind! Legitimate bond holders, suppliers and non-union employees were summarily dumped in the rush to violate Federal laws and reward those precious union thugs. Now let these same union thugs take the responsibility for their diminishing pensions, withering careers and embarrassing, corruptive practices.
    17 Sep 2012, 12:59 PM Reply Like
  • tcbracing
    , contributor
    Comments (255) | Send Message
     
    1.) Design, Build and Sell the World’s Best Vehicles
    2.) Strengthen our Brands
    3.) Grow Profitably Around the World
    4.) Maintain a Fortress Balance Sheet
    17 Sep 2012, 01:25 PM Reply Like
  • hackenzac
    , contributor
    Comments (218) | Send Message
     
    The share holder can sell when she wants to. If she wants to vote those shares, she has every right to. GM by all means should strive to avoid a government bailout in the future. If GM wants the shares back today, it must pay a premium or it amounts to a bonus bailout and that's not a very tenable position for a politician to be in outside of Michigan.
    17 Sep 2012, 03:14 PM Reply Like
  • MgtGuru
    , contributor
    Comments (9) | Send Message
     
    So many of you also deplore bailing out the banks and AIG as a bad idea...despite the fact that Uncle Sam made $$$ on these deals? Better the $$ spent here than on some pork barrel project in the South or South Western US...I'm not for subsidies but in some cases the alternatives are far worse...I still can't jsutify spending $50B on New Orleans post katrina...should have allowed it to revert back to swampland...if any thinks i feel guilty about a midwestern company getting a helping hand after wall street and washington help destroy industry in the midwest...sorry...we are only now getting our share...no more dam projects, flood control ,hurricane or earthquake or tornado rebuilds...those states can and should pay for...not the US govt and my tax dollars.
    18 Sep 2012, 09:49 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    The money "made" there pales in comparison to the losses on Freddie and Fannie. The net overall on bailouts is still around $200 billion NEGATIVE.

     

    On top of that, it's easy to make money on bailing out a bank when you give it essentially free money and let them keep the spread on the rates they charge everyone else.
    18 Sep 2012, 11:35 AM Reply Like
  • MgtGuru
    , contributor
    Comments (9) | Send Message
     
    touche' my friend...and a number of healthy banks were forced to take the $$$ when they didn't even want it in order not make the others look bad ( the investors would have to sort that out themselves)
    18 Sep 2012, 05:34 PM Reply Like
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