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Thread: Drudge Tweets: Treasury to lose 12 Billlion on GM

  1. #1

    Default Drudge Tweets: Treasury to lose 12 Billlion on GM

    attaching this link:

    http://www.detroitnews.com/article/2...text|FRONTPAGE

    DRUDGE REPORT ‏@DRUDGE_REPORT

    Treasury to lose $12 billion on GM... http://drudge.tw/SfbZIg

    Last month, it sold 200 million shares of its GM stock to the Detroit automaker for $5.5 billion, or $27.50 a share.

    In order to prevent hedge funds and other investors from taking advantage, the Treasury doesn't make the training plan public. The plan places limits on how much stock can be sold at any given time and at what prices. Government officials also can provide the banks direction on when they should sell additional shares.

    This week, the Treasury named Citigroup Inc. and JPMorgan Chase & Co. to manage the sale. They will get a 1 cent per share commission — or $3 million — for the sale of the entire stake.

    The Treasury has said it "intends to sell its shares into the market in an orderly fashion and fully exit its remaining GM investment within the next 12-15 months, subject to market conditions."

    The Treasury said there will be opportunities for smaller broker dealers, including women and minority-owned broker dealers, to participate in the sale of Treasury's remaining GM common shares pursuant to the plan.

    The government needs to get $72 per share for its remaining shares to break even on its $49.5 billion GM bailout. It initially held a 61 percent stake before selling about half of its shares in GM's November 2010 IPO at $33 a share

    GM shares fell on Friday in afternoon trading to $29.21, down $0.28, or 1 percent. At current prices, the Treasury would lose more than $12 billion on its GM bailout.

    The Treasury still holds a 74 percent stake in Ally Financial, the Detroit-based auto finance firm, as part of a $17.2 billion bailout.

    GM chief financial officer Dan Ammann said this week the automaker has no plans to buy any of the government's remaining shares.

    From The Detroit News: http://www.detroitnews.com/article/2...#ixzz2IKhc7QxA
    more at link
    Last edited by sailingaway; 01-18-2013 at 01:25 PM.
    "Integrity means having to say things that people don't want to hear & especially to say things that the regime doesn't want to hear. -Ron Paul

    "Bathtub falls and police officers kill more Americans than terrorism, yet we've been asked to sacrifice our most sacred rights for fear of falling victim to it." -Edward Snowden



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  3. #2

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    The unions WIN! Hurray for the working man! Unless you aren't in the UAW. Then F you.
    The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.

    "Who would be free, themselves must strike the blow." - Byron

    "Who overcomes by force, hath overcome but half his foe." - Milton

  4. #3

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    Quote Originally Posted by Acala View Post
    The unions WIN! Hurray for the working man! Unless you aren't in the UAW. Then F you.
    well, and citibank which seems to be getting $3 million of our money to act as some kind of broker.
    "Integrity means having to say things that people don't want to hear & especially to say things that the regime doesn't want to hear. -Ron Paul

    "Bathtub falls and police officers kill more Americans than terrorism, yet we've been asked to sacrifice our most sacred rights for fear of falling victim to it." -Edward Snowden

  5. #4

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    Quote Originally Posted by sailingaway View Post
    well, and citibank which seems to be getting $3 million of our money to act as some kind of broker.
    Wait, a bank is getting some bailout money? Must be necessary to prevent the collapse of the financial system.
    The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.

    "Who would be free, themselves must strike the blow." - Byron

    "Who overcomes by force, hath overcome but half his foe." - Milton

  6. #5

    Default

    General Motors: Too Big to Fail, Too Incompetent to Survive. Yeah, sure, Italy will buy Chrysler, but who will relieve us of this albatros around our necks?

    Quote Originally Posted by John Maynard Keynes
    In the long run we're all dead.
    Quote Originally Posted by Calvin Coolidge
    The attempt to regulate, control, and prescribe all manner of conduct and social relations is very old. It was always the practice of primitive peoples.
    In an insane world, crazy is the new sane.





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