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GM hasn't offered plan for government sell-off

Tennessean / Detroit Free Press -- The U.S. government eventually will liquidate its ownership stake in General Motors, but the automaker has not proposed an official plan for the Treasury Department to sell off its shares, a source familiar with the discussions said.

The Wall Street Journal reported Monday that the Treasury Department rejected GM’s request earlier this year to offload its remaining stake with a combination of a public offering and a GM share buyback plan. The government still owns about 32% of GM’s common stock, but its stake would fall to 26% if all outstanding warrants were exercised.

If the government sold its remaining shares at Monday’s price of about $24, taxpayers would lose more than $15 billion on the $49.5 billion GM bailout. The Treasury Department wants the stock price to creep higher to redu

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Submitted Sep 19, 2012 By: DellDude2

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shstew Veteran Author British Columbia Posts:291 Points:330,470 Joined:Nov 2011	Message Posted: Sep 20, 2012 8:18:19 AM Ignore shstew Report Abuse ok
alex395 Champion Author Louisville Posts:2,083 Points:280,375 Joined:Jan 2007	Message Posted: Sep 20, 2012 7:41:50 AM Ignore alex395 Report Abuse Bankrupt companies should go bankrupt not be bailed out by the Illinois mafia.
jrs4125 Champion Author Indiana Posts:2,893 Points:618,470 Joined:Sep 2011	Message Posted: Sep 20, 2012 6:43:23 AM Ignore jrs4125 Report Abuse And whats new if you are part of the 1% ?
tomok Champion Author Portland Posts:33,579 Points:2,372,235 Joined:Aug 2006	Message Posted: Sep 20, 2012 5:13:32 AM Ignore tomok Report Abuse Repay ALL the taxpayer money GM, it's Not yours to keep! If GM can't sell enough cars and trucks with a decent profit, copy what other successful car manufacturers are doing! This isn't rocket science GM! Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. The price of fuel at the pump is too high! 12/22/2012!
geminijax Champion Author Jacksonville Posts:16,920 Points:2,742,750 Joined:Aug 2005	Message Posted: Sep 20, 2012 12:42:37 AM Ignore geminijax Report Abuse BennoBlue: "You don't have to be a financial genius to know that you don't sell when the stock is going up." LOL! I've been an investor for over 20 years now & haven't done too badly. When the stock price is rising without strong fundamental catalysts, there's a real strong probability of what's known as a blow-off top. The stock takes a dive after that. Professionals will take profits along the way as the stock price is rising or hedge using options, to mitigate their risk. The amateur will participate in the ride up AND the ride down! "But I guess it's more important to him to take a loss than to do what he can for the economy." Really? If there aren't strong fundamental catalysts to propel the stock price higher, then selling is for cutting one's losses, not merely taking a loss for the sake of taking a loss. "Since much of his income has come from stock, it can't be because such a basic principle is unknown to him..." Quite right! You may want to think about that a few more times!
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Sep 19, 2012 11:28:47 PM Ignore tedjm1 Report Abuse If they sold, as per Romney, only taxpayers would be hurt. Wealth would feel nothing.
boatmen Champion Author New York Posts:3,201 Points:648,630 Joined:Jan 2011	Message Posted: Sep 19, 2012 11:27:27 PM Ignore boatmen Report Abuse Hello it's Thursday
BennoBlue Champion Author Virginia Posts:37,699 Points:1,491,270 Joined:May 2008	Message Posted: Sep 19, 2012 11:26:50 PM Ignore BennoBlue Report Abuse As it says in the article, GM's stock has increased value by 25% since July, so why would it make sense to sell now? You don't have to be a financial genius to know that you don't sell when the stock is going up. Romney's talked about dumping the stock, and that's exactly what it'd be to sell while the price is increasing -- deliberately taking a loss, or more of a loss than necessary. But I guess it's more important to him to take a loss than to do what he can for the economy. Since much of his income has come from stock, it can't be because such a basic principle is unknown to him...
crreed1 Champion Author West Virginia Posts:2,095 Points:2,549,740 Joined:May 2005	Message Posted: Sep 19, 2012 11:23:06 PM Ignore crreed1 Report Abuse ok
rollercoaster All-Star Author Hartford Posts:502 Points:567,960 Joined:Jul 2008	Message Posted: Sep 19, 2012 11:22:28 PM Ignore rollercoaster Report Abuse that ain't right !!!
12766 Champion Author New York Posts:2,579 Points:1,510,140 Joined:Oct 2008	Message Posted: Sep 19, 2012 11:21:11 PM Ignore 12766 Report Abuse OK
OGW Champion Author London Posts:5,436 Points:1,556,195 Joined:Sep 2005	Message Posted: Sep 19, 2012 11:19:11 PM Ignore OGW Report Abuse GM can't afford to buy back the stock even at the low price because of their mismanagement.
RENEGADEGAS Champion Author Missouri Posts:15,064 Points:1,617,850 Joined:Jul 2008	Message Posted: Sep 19, 2012 11:18:14 PM Ignore RENEGADEGAS Report Abuse The bailouts were a bad idea from the start and continue to be a pain in the sides of American taxpayers.
boatmen Champion Author New York Posts:3,201 Points:648,630 Joined:Jan 2011	Message Posted: Sep 19, 2012 11:18:07 PM Ignore boatmen Report Abuse Real slow news day
Gassed01 Champion Author Toronto Posts:6,480 Points:1,826,365 Joined:Jan 2006	Message Posted: Sep 19, 2012 11:18:00 PM Ignore Gassed01 Report Abuse They need to sell more Volts to the army.
cheapertvs Champion Author Richmond Posts:10,425 Points:2,768,445 Joined:Jan 2004	Message Posted: Sep 19, 2012 11:17:59 PM Ignore cheapertvs Report Abuse Sounds like the government is looking out for the tax payer....
mfeldstein Champion Author Ottawa Posts:8,296 Points:1,955,255 Joined:Feb 2007	Message Posted: Sep 19, 2012 11:17:07 PM Ignore mfeldstein Report Abuse Days old news.
joel27nc Champion Author Raleigh Posts:10,672 Points:1,885,095 Joined:Mar 2008	Message Posted: Sep 19, 2012 11:16:50 PM Ignore joel27nc Report Abuse Time may tell.
granitestater Champion Author New Hampshire Posts:8,975 Points:1,457,475 Joined:Oct 2008	Message Posted: Sep 19, 2012 11:16:29 PM Ignore granitestater Report Abuse This is Obama's idea of a success story. I don't wanna know what he thinks a failure would look like...
Bigwaynef Champion Author South Carolina Posts:11,667 Points:2,107,460 Joined:Dec 2006	Message Posted: Sep 19, 2012 11:16:21 PM Ignore Bigwaynef Report Abuse I wanna know whats going on in China with GM there...
LanguageMan1 Champion Author Tampa Posts:11,861 Points:1,688,515 Joined:Apr 2008	Message Posted: Sep 19, 2012 11:16:00 PM Ignore LanguageMan1 Report Abuse Why would there be any selling while prices for the stock are low. It makes sense. You sell at a profit.
bridgerunner Champion Author Virginia Posts:4,922 Points:1,033,560 Joined:Jul 2009	Message Posted: Sep 19, 2012 11:15:43 PM Ignore bridgerunner Report Abuse The taxpayer is the big loser.
arb0526 Champion Author Greensboro Posts:2,112 Points:437,345 Joined:Mar 2011	Message Posted: Sep 19, 2012 11:14:25 PM Ignore arb0526 Report Abuse as long as money is flowing freely would you be eager to stop it?
Martinman Champion Author Mississippi Posts:14,869 Points:2,119,580 Joined:Sep 2005	Message Posted: Sep 19, 2012 11:14:09 PM Ignore Martinman Report Abuse The above figure is nothing more than a 'paper loss'. Second, the potential lost to the federal government was initially forecast to be more than $40 Billion. Third, the loss to the fdederal government alone, of a failure by either Chrysler or General Motors would have dwarfed the above paper loss. What do you think the impact would have been as a result of the loss of up to 2.9 million jobs? What do you think the impact would have been as a result of the loss of income tax revenue not just the federal government, but to state, county, and local municipalities? What would the loss have been to the federal government's Pension Benefit Guaranty Corporation, that the taxpayers would have been on the hook for? What would have been the cost to state governments in terms of unemployment and food stamps? What would have been the cost to the federal government for Medicare and Medicaid? What would have been the costs the thousands of businesses, from the bankurptcy failures of hundreds of auto parts suppliers? Even at $50 BILLION, the cost was significantly less, compared to the alternative. .
Hi1 Champion Author Ontario Posts:4,990 Points:1,751,335 Joined:Jun 2007	Message Posted: Sep 19, 2012 11:13:41 PM Ignore Hi1 Report Abuse Old news.
CDMAuto Champion Author Connecticut Posts:3,927 Points:780,580 Joined:Apr 2011	Message Posted: Sep 19, 2012 11:12:54 PM Ignore CDMAuto Report Abuse yep!
yakstar Champion Author Montreal Posts:2,550 Points:506,250 Joined:Jan 2012	Message Posted: Sep 19, 2012 11:12:01 PM Ignore yakstar Report Abuse whatever...
Redcarn Rookie Author Indianapolis Posts:25 Points:237,120 Joined:Apr 2006	Message Posted: Sep 19, 2012 11:11:22 PM Ignore Redcarn Report Abuse GM will not post a profit as long as the government owns a part of the company.
rahcat Champion Author Grand Rapids Posts:2,676 Points:689,675 Joined:Jan 2010	Message Posted: Sep 19, 2012 11:09:49 PM Ignore rahcat Report Abuse Should have never gotten involved with this in the first place.
starfighter08 Champion Author Illinois Posts:1,342 Points:368,130 Joined:Sep 2008	Message Posted: Sep 19, 2012 11:06:59 PM Ignore starfighter08 Report Abuse I would never want buy a GM vehicle. GM = Gov't Motors Defination of an elephant, a mouse built to Gov't specifications.
ManOfLeisureII Champion Author Philadelphia Posts:2,010 Points:480,125 Joined:Jan 2012	Message Posted: Sep 19, 2012 11:06:26 PM Ignore ManOfLeisureII Report Abuse We'd need the price to be over $50 per share to recover all the bailout money GM got. At the current price of $21, we are a long way off.
1fulltank Champion Author Buffalo Posts:8,036 Points:1,570,995 Joined:Nov 2008	Message Posted: Sep 19, 2012 11:06:23 PM Ignore 1fulltank Report Abuse Old article.
NoGas714 All-Star Author Indiana Posts:754 Points:772,380 Joined:May 2005	Message Posted: Sep 19, 2012 11:06:07 PM Ignore NoGas714 Report Abuse Problem is, since everyone in this country is so broke. If they were to sell, it would likely have a foreign buyer.
OGW Champion Author London Posts:5,436 Points:1,556,195 Joined:Sep 2005	Message Posted: Sep 19, 2012 11:06:06 PM Ignore OGW Report Abuse Hopefully the government will hold onto the stock until China buys it and the price goes up then the government can recover taxpayers money because as long as the present GM execs are running GM, the people will never get back all their money and if Romney gets in, the people will never recover any of the taxpayers bailout money.
bvrbill Champion Author Eugene Posts:3,436 Points:545,250 Joined:Jul 2011	Message Posted: Sep 19, 2012 11:04:41 PM Ignore bvrbill Report Abuse I wont buy another GM vehicle. [Edited by: bvrbill at 9/20/2012 12:06:35 AM EST]
pepinoNC Champion Author Raleigh Posts:2,291 Points:685,515 Joined:May 2011	Message Posted: Sep 19, 2012 11:04:30 PM Ignore pepinoNC Report Abuse Romney said he would sell at a loss, why isn't anyone supporting that?
cheapchickKY Champion Author Lexington Posts:4,154 Points:823,015 Joined:Jan 2011	Message Posted: Sep 19, 2012 11:03:41 PM Ignore cheapchickKY Report Abuse What's the hurry?
Ray_10589 Champion Author New York Posts:5,076 Points:1,209,485 Joined:May 2009	Message Posted: Sep 19, 2012 11:03:21 PM Ignore Ray_10589 Report Abuse was not a good idea
Cellsite Champion Author Appleton Posts:1,321 Points:311,160 Joined:Jun 2012	Message Posted: Sep 19, 2012 11:03:18 PM Ignore Cellsite Report Abuse Yuk
jimpricehunter Veteran Author Dallas Posts:272 Points:163,460 Joined:Aug 2012	Message Posted: Sep 19, 2012 11:02:56 PM Ignore jimpricehunter Report Abuse The founding articles of this nation make it pretty clear that the government was never supposed to become involved in running or purchasing and trading private businesses. Well Barack Obama is certainly not the first president to violate that founding premise but no one has done so in such a grand blatant fashion as him!
radiorumor Champion Author Texas Posts:2,946 Points:780,565 Joined:Feb 2011	Message Posted: Sep 19, 2012 11:02:44 PM Ignore radiorumor Report Abuse See, this was a bad idea
BAMBAM197105 All-Star Author Pennsylvania Posts:592 Points:104,835 Joined:Sep 2012	Message Posted: Sep 19, 2012 11:02:31 PM Ignore BAMBAM197105 Report Abuse OK
shores4now Champion Author Kentucky Posts:2,544 Points:550,525 Joined:Jul 2009	Message Posted: Sep 19, 2012 11:00:48 PM Ignore shores4now Report Abuse Ok
joeschmo12 Champion Author New York Posts:1,102 Points:324,550 Joined:Mar 2012	Message Posted: Sep 19, 2012 10:55:48 PM Ignore joeschmo12 Report Abuse Ha
ExplorerWA Champion Author Washington Posts:4,235 Points:823,975 Joined:Feb 2011	Message Posted: Sep 19, 2012 10:54:46 PM Ignore ExplorerWA Report Abuse They have no need need to sell so why bother.
southrob Champion Author Tucson Posts:3,731 Points:713,925 Joined:Mar 2011	Message Posted: Sep 19, 2012 10:51:08 PM Ignore southrob Report Abuse and gas still goes up
papa56NC All-Star Author North Carolina Posts:725 Points:142,760 Joined:Apr 2012	Message Posted: Sep 19, 2012 10:48:15 PM Ignore papa56NC Report Abuse Git-ur-dun
JohnLM Champion Author Orlando Posts:1,046 Points:538,230 Joined:May 2010	Message Posted: Sep 19, 2012 10:47:08 PM Ignore JohnLM Report Abuse How did thy get into this ess?
gerreg All-Star Author Nebraska Posts:774 Points:1,669,330 Joined:Jun 2007	Message Posted: Sep 19, 2012 10:44:27 PM Ignore gerreg Report Abuse OK
WIPACKERFAN Champion Author Chicago Posts:8,939 Points:1,870,175 Joined:Aug 2005	Message Posted: Sep 19, 2012 10:42:19 PM Ignore WIPACKERFAN Report Abuse Get to it GM