Rattner defends rescue of automakers, says some money is gone(GM got $50b, but now worth $25b)

WP ^ | 10/22/09 | Peter Whoriskey

[TigerLikesRooster]

Rattner defends rescue of automakers, says some money is gone

But ex-official believes most of GM investment can be recouped

By Peter Whoriskey

Washington Post Staff Writer Thursday, October 22, 2009

The U.S. government's stake in General Motors is currently worth about $25 billion, or about half the amount it poured into the ailing automaker, the former chief of the Obama administration's task force on the auto industry said Wednesday.

But in his most extensive remarks since leaving the post in July, Steven Rattner defended the Obama administration's decision to rescue U.S. automakers.

Rattner said there's "a good chance" the United States can recover the $30 billion invested in GM by the Obama administration, which required the company to shrink and reorganize in order to get the money. But of the other roughly $20 billion previously lent to GM, he said, "I don't think we are going to see [it] again."

[TigerLikesRooster]

Ping!

[ClearCase_guy]

I’ll rush right out and buy one of their cars. [heavy, heavy sarcasm]

[Paladin2]

Dear Rattner:

You are a 'Rat. So is Zer0.

At least Half of America will not buy any GM offering as it represents a vote for Zer0.

[greatplains]

Wow, that was a great investment.

Too bad there’s not more around like that. /sarc

[cranked]

What an investment: $50 billion bailout in a company now only worth $25 billion. Scweet and taxpayer money well spent to boot. =.=

[Para-Ord.45]

PREDICTION:

3 - 5 years from now GM goes Bankrupt.

[Glenn]

Where did the $20 billion go?

Someone has it.

[TigerLikesRooster]

I am sure some made plenty of bucks by shorting GM stocks.

[maggief]

Keep throwing money down those union rat holes.

[JPG]

RATtner. Thought I smelled one.

[jonrick46]

More money thrown down the RAThole. Our future generation will be eating cat food.

[CutePuppy]

Interestengly, the auto execs will, most likely, be exempt from pay restrictions by our new "pay czar" Kenneth Feinberg:
Auto task force shocked by state of GM, Chrysler - FR / AP, 2009 October 21, #26

GM executives met recently with U.S. Treasury pay czar Kenneth Feinberg and left with the understanding the automaker would be able to offer a significant amount of stock but no more than a $1 million annual salary, the newspaper said, citing people familiar with the matter. ..... "We've consistently said that one challenge to filling any position from outside might be the pay restrictions," GM spokesman Tom Wilkinson said.

and
Auto task force shocked by state of GM, Chrysler - FR / AP, 2009 October 21, #28

Auto Executives Unlikely to Face Brunt of Pay Cuts, Cole Says

General Motors Co. and Chrysler Group LLC, whose bankruptcies were backed by the U.S. Treasury, may not face the same pay cuts for senior executives as those at banks that borrowed from the Troubled Asset Relief Program.

[AFPhys]

The entities who SHOULD be dictated to regarding the auto bail out is the unions. They should be required to cut all benefits and wages and retirement payouts since the government bailed them out.

[nascarnation]

You know they’re good until election day 2012.

[nascarnation]

The unions are a vital segment of the Baraqqi coalition.
That’s why they got rewarded when the bankruptcy was served up.
If your congress critter happens to be a Dem, ask them for a picture of the 50 yr old UAW retiree you’re supporting with $3200/month pension and silver plated healthcare.