Tuesday, May 7, 2013

Just Another Government Bailout

Remember how a lot of people said that bailing out the auto industry was a waste of money and that we should let Detroit go bankrupt?

Yeah, how’d that work out, anyway?

Today, the U.S. Department of the Treasury announced the next step in its plan to sell its approximately 241.7 million remaining shares of General Motors (GM) common stock with the initiation of a second pre-defined written trading plan.

“TARP’s emergency support to GM during the financial crisis was necessary to prevent the collapse of the American auto industry and save more than one million American jobs,” said Tim Massad, Treasury Assistant Secretary for Financial Stability. “Earlier this year, Treasury launched an effort to sell its remaining shares in GM common stock. We are pleased with the progress to date and will continue exiting this investment in accordance with our previously announced plan and timetable, and in a manner that maximizes returns for taxpayers.”

Treasury’s sale of its GM common stock is part of its continuing efforts to wind down the Troubled Asset Relief Program (TARP). To date, Treasury has already recovered nearly 94.6 percent ($396.70 billion) of the funds disbursed through TARP ($419.37 billion). Excluding the housing programs, Treasury disbursed $411.72 billion for all TARP investment programs and has now recovered $414.25 (including the proceeds from sales of all Treasury AIG shares).

In short, the government recovered almost all the money spent on TARP and actually made a profit.  Plus it is selling the rest of its GM stock at a profit as well.

Suck on that, Mitt.

One bark on “Just Another Government Bailout

  1. Leave it to NPR to find the cloud in the silver lining. The “news” item they ran on this today focused on the (lower) value of the stock and how it was $15/share below where it was when the bailout happened. Is GM stock cheaper now? Sure. But did the Treasury get its investment back? Yes, and with 241 million shares left to sell. Talk about the soft bigotry of low expectations…

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