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Author Topic: US Treasury Losses $11.2 Bln On 2008 TARP Bailout Of General Motors Back to Topics
Tacodan
Champion Author
Cincinnati

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Message Posted: May 1, 2014 6:47:00 AM

The U.S. Treasury has realized a loss of $11.2 billion on its bailout of automaker General Motors Co. ( GM ) during the height of the financial crisis in 2008, according to a quarterly report submitted to the Congress dated April 30, 2014 from the office of the Special Inspector General for the Troubled Asset Relief Program or TARP.


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Tacodan
Champion Author Cincinnati

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Message Posted: May 1, 2014 7:26:24 PM

Out with GM and out with Obama ........
drpepperTX
Champion Author Texas

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Message Posted: May 1, 2014 6:57:42 PM

"Saying the U.S. taxpayer "lost money" is probably the wrong perspective, considering that spending no money at all likely would have meant a financial catastrophe for millions of Americans far in excess of a mere $14 billion.
Had GM and Chrysler collapsed, it would have cost the federal government about $28.6 billion in lost tax revenues and assistance to the unemployed in just the first two years alone, according to the Michigan-based Center for Automotive Research. In other words, doing nothing could have cost more than twice as much the bailout.
By the way, that $28.6 billion figure doesn't include the business taxes the federal government would have lost but can now expect from two large, profitable automakers and their suppliers. It also doesn't include any lost state and local tax revenue."
===============================================
Complete spoon fed Obama administration BS.

The Obama administration treated the GM (and Chrysler) bankruptcy as a Section 363 sale, which are known among bankruptcy lawyers as “Sham” sales. These 363 sales are intended to sell assets out of bankruptcy from one company to another, but are not intended as vehicles to facilitate entire corporate restructurings. In a reorganization process, all creditors are given the right to vote on the proposed plan, as well as the opportunity to offer competing reorganization plans. A 363 asset sale has no such requirements, and is being used increasingly by companies seeking to avert paying legitimate claims to creditors.
bwatchingu
Champion Author Arkansas

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Message Posted: May 1, 2014 6:53:59 PM

Obama political payoff.
dodsworth
Champion Author Salem

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Message Posted: May 1, 2014 2:36:43 PM

Yes, dwg6392, I'm with you on it.

This is another case of being able to find written "documentation" for anything you want to believe.
ss70
Champion Author Detroit

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Message Posted: May 1, 2014 12:38:52 PM

get the money back from GM
pricechecker08
Champion Author Ohio

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Message Posted: May 1, 2014 12:10:12 PM

The tax payer allready knew this because of the write-offs. The tax payer paid for this Not the Government.
Settjec
Champion Author Little Rock

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Message Posted: May 1, 2014 12:01:45 PM

U.S. Treasury my fanny.....U.S. TAXPAYERS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
werich44
Champion Author California

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Message Posted: May 1, 2014 11:59:05 AM

Guess what obama is planning to give them more of our money!
StArrow68
Champion Author Oakland

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Message Posted: May 1, 2014 10:51:18 AM

Saying the taxpayers lost $11B is fact and perspective is just spin to try and explain that something else might have been worse. Then again, we will never really know and the fact is that the Govt gave away a lot of tax dollars.
But hey, it's other people's money.
LanguageMan1
Champion Author Tampa

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Message Posted: May 1, 2014 10:48:31 AM

LOL! I have been trying to tell people that there was more to it and that GM has NOT fully repaid them [and they haven't with what's not officially on the books per se] and people said they paid back the government and with a profit. Uh hah, yeah, RIGHT!

Something like that doeslayersr.

However, I'm glad GM and Chrysler were bailed out, though I wish Chrysler was American instead of foreign owned. It would be worse if they weren't bailed out.
doeslayersr
Champion Author Illinois

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Message Posted: May 1, 2014 10:44:20 AM

It should read the US Tax Payers continue to take it in the rear.
tigreme
Champion Author Maine

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Message Posted: May 1, 2014 10:37:48 AM

Should the government have let Chrysler fail in 1979? That loan guaranteee led to one of the most talked about turn-arounds in business history.
mitt4prez
Champion Author Tacoma

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Message Posted: May 1, 2014 10:18:52 AM

"Well, maybe they did have good business sense:"

A Won voter at it again. a) Don't count the huge subsidies the govt gave e.g. allowing Govt Motors to keep tax-loss carryforwards that are wiped out a a lawful bankruptcy, b) Don't count Govt Motors's behavior since then e.g. put customer lives at risk because it cost a couple of bucks to correct an ignition key program c) talk about what problems might have happened if the lawful bankruptcy process had been followed while ignoring the creation of "too big to fail" monsters. And above all, worship govt.
gvan
Champion Author Chicago

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Message Posted: May 1, 2014 10:11:28 AM

"Government has never been known for good business sense"

Well, maybe they did have good business sense:

Saying the U.S. taxpayer "lost money" is probably the wrong perspective, considering that spending no money at all likely would have meant a financial catastrophe for millions of Americans far in excess of a mere $14 billion.
Had GM and Chrysler collapsed, it would have cost the federal government about $28.6 billion in lost tax revenues and assistance to the unemployed in just the first two years alone, according to the Michigan-based Center for Automotive Research. In other words, doing nothing could have cost more than twice as much the bailout.
By the way, that $28.6 billion figure doesn't include the business taxes the federal government would have lost but can now expect from two large, profitable automakers and their suppliers. It also doesn't include any lost state and local tax revenue.
radbadtz
Champion Author Halifax

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Message Posted: May 1, 2014 10:05:12 AM

Snicker.
Skunk63
Champion Author Phoenix

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Message Posted: May 1, 2014 9:56:27 AM

Funny, if you listen to anyone associated with GM, you'll hear they paid back every dime plus interest.
taxiken
Champion Author Twin Cities

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Message Posted: May 1, 2014 9:54:25 AM

Is government too big to fail?
TXRanger09
Champion Author Dallas

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Message Posted: May 1, 2014 9:51:50 AM

Will we ever be tricked again by that silly line, "Too big to fail"? Not me. Maybe its dangerous to get that big.
ModelWarships
Champion Author Missouri

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Message Posted: May 1, 2014 9:51:34 AM

and look at all the good it did. Wait, GM is back to losing money, oops.
dwbuddy
Champion Author Fort Worth

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Message Posted: May 1, 2014 9:51:27 AM

Too big to fail ...becoming a mess for the U.S. this will create more problems down the road
drpepperTX
Champion Author Texas

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Message Posted: May 1, 2014 9:37:16 AM

GM should have gone through normal bankruptcy procedure by rule of law. The reorganization would have created a much stronger base that would have saved the jobs anyway. Now, the Unions would not have liked losing their control but the taxpayers would not be out of $11+ BILLION and the legitimate creditors would have had a chance to be made whole instead of being robbed by the government of their rightful claim. This was a great injustice perpetrated on Americans by Obama.
Point__man
Champion Author Raleigh

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Message Posted: May 1, 2014 9:27:39 AM

worse part is that the politicians responsible still think their actions were correct ;)
investmentdr
Champion Author Cleveland

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Message Posted: May 1, 2014 9:25:08 AM

more to the bailout than P&L on the transaction
investmentdr
Champion Author Cleveland

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Message Posted: May 1, 2014 9:24:39 AM

whatever
Bobmilan
Champion Author Louisville

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Message Posted: May 1, 2014 9:23:02 AM

More Obama lies -said in last campaign that GM was done and US profited.
jrschl
Champion Author Louisville

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Message Posted: May 1, 2014 9:21:02 AM

Wow. That's about $34/citizen. Now, that doesn't account for the non-taxpaying citizens, and uses 330MM citizens.
humblepie
Champion Author Toledo

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Message Posted: May 1, 2014 9:19:27 AM

sadly, taxpayers will never know the true cost of the union bailout
teenitup
Champion Author Houston

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Message Posted: May 1, 2014 9:12:09 AM

Like the Benghazi cover up, it takes years for the truth of these scandals to come out.
mastermariner
Champion Author Texas

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Message Posted: May 1, 2014 9:01:51 AM

Government has never been known for good business sense
solase
Champion Author Oklahoma City

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Message Posted: May 1, 2014 8:59:21 AM

I wonder if this includes lost tax payer interest. There's no such thing as 'too big to fail'! Rome was the largest government of its time and it failed due to corrupt politics. Do we really think we've overcome reality with political bs?!?
Dale Jr.
Champion Author Illinois

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Message Posted: May 1, 2014 8:42:36 AM

Thank you government for wasting our money.
Ray_10589
Champion Author New York

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Message Posted: May 1, 2014 8:38:50 AM

No bailouts should be given ...
savannahoaks
Champion Author Rockford

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Message Posted: May 1, 2014 8:37:44 AM

Unions came out ahead, everyone else lost - bond holders, stock holders, taxpayers, local governments.
EdWoods
Champion Author Maryland

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Message Posted: May 1, 2014 8:34:12 AM

Could have bailed out the U.S.Auto industry, increased safety, boosted our own economy, without spending YOUR money to do it. BAN IMPORTS!....
ByGuy
Champion Author Dallas

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Message Posted: May 1, 2014 8:32:10 AM

But they saved union jobs which was their intent.
UglySean
All-Star Author New York

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Message Posted: May 1, 2014 8:26:55 AM

Everyone knew the whole Government Motors debacle was a gross misjudgement on the part of our government. No surprises here. No more bailouts, please. Let's see what happens when too big to fail fails.
fltdoc
Champion Author Oklahoma

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Message Posted: May 1, 2014 8:26:14 AM

They should have let them go down. Government Motors has no integrity and no credibility.
NilesBishop
Champion Author Philadelphia

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Message Posted: May 1, 2014 8:15:52 AM

People just don't get how BIG 11 BILLION dollars is. First off for all those who say it saved jobs well not ALL of the jobs would have disappeared. You don't think someone would have purchased GM on it's way down? Also 11 BILLION dollars in enough money to make 11,000 people MILLIONAIRES. If you are generous and assume that unemployment for 2 years would have cost $100,000 per person that could have paid the unemployment benefits of 110,000 people for 2 years. Take a look at the salaries the top executives drew during those 2 years and you will be sick.

Boycott GM
pilotmass
Champion Author Boston

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Message Posted: May 1, 2014 8:15:02 AM

Cheap at the price. Letting GM fail would have destroyed the US Economy in towns and cities across the Country.
1Casey
Champion Author Albany

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Message Posted: May 1, 2014 8:05:11 AM

no one is watching. w2hy?
cucamongacurtis
Champion Author San Bernardino

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Message Posted: May 1, 2014 8:02:32 AM

More money was lost than what was reported in the article.
runnerpaul
Champion Author Michigan

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Message Posted: May 1, 2014 8:00:40 AM

Seems like a good investment for all the jobs it saved as each job saved is paying taxes back to the government.
I work for a supplier and am non union and would have lost my job without the bailout. The company I work for supplies to the big 3 as well as to the overseas automobile companies but "overseas" is covered by my company's European divisions.
WestDriver
Champion Author Grand Rapids

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Message Posted: May 1, 2014 7:53:32 AM

I'm actually encouraged. I thought that would have cost me more money. Oh, and you, too. It cost you money. Doesn't it make you feel warm all over to have paid their salaries?
kyrunner
Champion Author Lexington

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Message Posted: May 1, 2014 7:52:43 AM

Bailing out this company was a bad idea. They could have went through a normal bankruptcy and cost the TAXPAYERS NOTHING! They lost me forever after they failed to fully pay back ALL costs to TAXPAYERS.
BritFix
Champion Author Kalamazoo

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Message Posted: May 1, 2014 7:41:35 AM

stop bailouts
OHMS
Champion Author Orange County

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Message Posted: May 1, 2014 7:40:10 AM

I couldn't find these in their new hidden location for hours; what the heck?
RonV42
All-Star Author Illinois

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Message Posted: May 1, 2014 7:38:20 AM

Excuse me, it's taxpayers dollars that are lost the U.S. Government confiscates tax dollars to do this deals.
EnviroChemist
Champion Author Oklahoma

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Message Posted: May 1, 2014 7:34:47 AM

Nice how the US government sold all its shares in GM before the huge ignition switch recall or the loss would have been greater.
Radar1992
Champion Author Virginia

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Message Posted: May 1, 2014 7:33:11 AM

Could it be that the gov't sold thier stake just prior to the ignition debacle?

dwg6392
Champion Author Maryland

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Message Posted: May 1, 2014 7:17:47 AM

All in all, I remain convinced that the net benefit of TARP was positive. I'm assuming that not everyone agrees with me.
YellowDucky
Champion Author St. Louis

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Message Posted: May 1, 2014 7:17:39 AM

ouch!!
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