"Gummint Motors" Wants Out of Faustian Bargain With Treasury Department

Marketwatch tells us the story:

Following a $50 billion bailout in 2009, the U.S. taxpayers now own almost 27% of the company. But the newspaper said GM executives are now chafing at that, saying it hurts the company’s reputation and its ability to attract top talent due to pay restrictions.

So, this particular minority shareholder is here to stay.  Or sell, when they choose, most likely.  Regardless of how the Board of Directors and majority shareholders feel.  Or whether it is good for GM or not.   Because, well, they’re the Government.   And, these days, can do and say anything, extralegal or otherwise, without accountability and without restraint.

Earlier this year, GM GM -1.57% presented a plan to repurchase 200 million of the 500 million shares the U.S. holds with the balance being sold via a public offering. But officials at the Treasury Department were not interested as selling now would lead to a multi-billion dollar loss for the government, the newspaper noted.

How much loss?  About $14.6 billion over the $50 billion.   Meaning, for every dollar given to GM, we now have more than a buck and a quarter of new debt.   Quite the “stimulus”, innit?   And so close to the election, too.   It’s like having Paulie for a “business” partner.


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