Skip to comments.U.S. Takes $9.7 Bil Hit in GM Bailout
Posted on 10/29/2013 1:29:52 PM PDT by jazusamo
President Obama loves taking credit for saving the American auto industry and this week a federal audit reveals that the rescue effort has fleeced U.S. taxpayers out of an astounding $9.7 billion.
While this may seem inconceivable to most, the numbers dont lie. The United States Treasury has recorded a $9.7 billion loss on its $49.5 billion bailout of General Motors, according to a report released this week by the Special Inspector General for the Troubled Asset Relief Program (TARP). Remember the $700 billion boondoggle created to help stabilize the nations financial system during the 2008 crisis by purchasing toxic assets?
A chunk of the cash went to GM, the struggling Detroit-based auto maker that has publicly celebrated being clear from all government loans. In fact, GM held a ceremony at a Kansas City factory in 2010 to announce it had paid back $8.1 billion in government loans. As of today, GM has repaid in full and interest , the companys CEO, Ed Whitacre, told the crowd. Obama has many times touted the success of the governments bailout of GM.
To shove it down the nations collective throat as a triumph, numbers have been kept from the public until now. Part of the bailout included taxpayers ownership stake in GM, the forced purchase of so-called toxic assets. Not surprisingly, the stock sales have all taken place below Treasurys break-even price, the TARP watchdog found. That means taxpayers must take the bewildering $9.7 billion hit.
The new report also documents billions of dollars in fraud and corruption associated with TARP throughout the nation. They include multi-million-dollar bank fraud and Ponzi schemes, foreclosure rescue scams and a number of other illicit operations using TARP funds. In fact the IGs report discloses in detail many of the TARP-related crimes that have been prosecuted throughout the country, including more than a dozen states and the District of Columbia.
Getting back to the GM debacle, just a few weeks ago Judicial Watch revealed as part of an ongoing TARP investigation, that the government lost or wrote off $1.6 billion invested in GM since the beginning of this year alone. The figure came from Treasury documents obtained by JW. To get an idea of the rapid rate of loss, the files reveal a shocking $477 million loss during a small period between May 6 and the end of June.
Whoa, whoa whoa, whoa!
Obama said we’d get ALL of our money back!
I believe 0bama thinks $9.7 billion is just petty cash when it’s not his money.
Just one more lie from the “Won.”
“...The United States Treasury has recorded a $9.7 billion loss on its $49.5 billion bailout of General Motors...”
OK, so we spent $49 billion (taxpayer’s money) and we lost $9 billion.
Do I add the 9 to the 49 or subtract it?
I find this all so confusing...
The winners are the unions and the unionized workers and retires. No mention in the post is there ?
It costs money to get extra votes
That's gotta be a typo - obamatollah would not allow that corruption. Unless he did...
I could well be wrong but I understand it to be that GM paid back some loans and Treasury just sold the last of the GM stock it was issued so the loss to taxpayers is $9.7 billion.
Please - I don’t need 2 trillion or even 2 Billion or 200 Million or even 20 million. I would be very happy with just 2 million. 1 million to live off the interest and 1 million to buy my house, property, and toys. I don’t understand why folks are so greedy...
$9.7 billion = 400,000 brand new chevy silverados
What I find amazing is there there were suckers willing to purchase “new” Gm stock. Guess they think that they’ll not loose their money - as did the first group O’suckers.
Oh, forgot, they’re probably Obamadork contributers (e.g. croooks) and will get their monies back when GM goes t*ts up the second time. (And it will.)
Yep, the winners were the UAW and the union members pension fund, a real rip off of taxpayers.
That’s a lot of silverados and they’re not selling worth a darn now.
The Food Stamp President
The Free Money President
One reason why after a lifetime of NEW GM autos and trucks... I am driving a beater.
THE reason after a lifetime of buying American cars I’m driving a Toyota, and buying my daughter a BMW.
We are a Toyota household nowadays.
So, basically, from May 6 until the end of June, the US Taxpayers had $9,000,000 A DAY thrown down the crapper by the Democrats to buy votes from the UAW. Higher than that if you figure in that they don’t work on weekends.
That’s a good way of putting it and it sounds accurate to me.
Interest? Interest? What interest?
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