Romney Says He Would Unload GM Stake at Loss

WSJ ^ | June 5, 2012 | Sara Murray

[what's up]

Mitt Romney plans to shed the government’s stake in General Motors if he wins the presidency, even if it means taking a loss, the presumptive GOP nominee told the Detroit News.

[KC_Conspirator]

The government resold GM stock at 10 dollars less a share after they took over and called that a ‘success’. Good for Romney.

[Jonty30]

I agree the government should get out of GM, but why lose the $16 billion. Why can’t GM just buy back those shares over the next 10 - 15 years?

[Bobalu]

The proceeds should be given to the bond holders that were screwed over by Zero.

[mriguy67]

If Romnets elected, I would short GM stock

[unkus]

Yep.

[JSteff]

Government has NO BUSINESS running a Private Enterprise.

Not only that, they especially have no BUSINESS **OWNING** a Private Enterprise. When government owns one it is no longer a Private Enterprise at all.

[JSteff]

Iacocca

Yes, but didn't Iacocca pay us back?
We will NEVER see GM or the Unions pay us back.

[dfwgator]

It doesn’t matter, the fact is the Chrysler bailout set the precedent that the government was now expected to save companies, and decide the winners and losers in the marketplace.

[okie01]

Yes, but didn't Iacocca pay us back? <

The mechanism for "bailing-out" was a loan guarantee.

Chrysler paid back the banks without the government (i.e., taxpayers) ever having to pony up a penny.

[Jeff Head]

I believe those figures were before the IPO.

Here is the current opwnership:

GM Ownership
http://www.gminthemedia.com/2012/03/21/who-owns-gm-stock/

The US, after the IPO now is at 32%...some quore as low as 26%.

Saudi and China are in that 44.9% individual and institutional owners.

But their numbers are way down from when the IPO was let. The stock has lost something like 25% or more since then and I believe they have been dumping it. However, one Saudi Prince alone still owns 1% of the stock by his lonmesome, Prince Walid bin Talal, who bought 500 million in shares during the IPO and has held onto it.

YThese days it is exceedingly difficult to find out exactly how much Saaudi Arabia and China own.

[Jeff Head]

I believe those figures were before the IPO.

Here is the current opwnership:

GM Ownership
http://www.gminthemedia.com/2012/03/21/who-owns-gm-stock/

The US, after the IPO now is at 32%...some quote as low as 26%.

Saudi and China are in that 44.9% individual and institutional owners.

But their numbers are way down from when the IPO was let. The stock has lost something like 25% or more since then and I believe they have been dumping it. However, one Saudi Prince alone still owns 1% of the stock by his lonmesome, Prince Walid bin Talal, who bought 500 million in shares during the IPO and has held onto it.

These days it is exceedingly difficult to find out exactly how much Saaudi Arabia and China own.

[Spktyr]

At the time, Chrysler was a critical defense contractor. They were our only manufacturer of main battle tanks, among other things. The ‘bailout’ was in loan guarantees so the taxpayer didn’t have to pay anything out, Chrysler presented a viable recovery plan - and most important, as part of the bailout agreement, Chrysler had to sell off all of their defense industries so that if the plan failed the country wouldn’t lose a critical defense supply.

[taildragger]

Shed GM?

Just a start, how about in the same week shed AMTRAK, Fannie and Freddie and any other GSE that we don't need.

[pistolpackinpapa]

How is this playing in Michigan? I’m thinking Romney might carry The Wolverine State. Whaddya think FReepers?

[pieceofthepuzzle]

It would be interesting to know how many people decided against buying a GM product specifically because of the connection to Obama and the government. If this connection did not exist, and the unions had been held accountable for their role in decimating this company, I would have strongly considered buying a new GM car.

Personally, I think Romney's plan of disentangling the government from GM presents the best possibility for this company to actually have a chance to recover. If I were running GM, I would pick the best few products I had, push the unions extremely hard, and market the company and its products as ‘Private and Free in America’.

[Lonesome in Massachussets]

The mechanism for "bailing-out" was a loan guarantee.

A pledge of one's credit is has tangible value. If you co-sign an auto loan for your son, he can borrow on more favorable terms. If the government co-signs, (at least back in the 70's) more favorable still. But when you co-sign, it impairs your credit rating and you must make future loans on less favorable terms.

[chainsaw]

“Mitt Romney plans to shed the government’s stake in General Motors if he wins the presidency, even if it means taking a loss,”

Spoken like a good liberal. What is wrong with disposing of the stock at cost, or even a profit.

Personally I’ll never buy another GM product.

[GailA]

Zebra's can't change their stripes, R is a RINO SOCIALIST! A dime's difference than the Marxist pair we now have occupying the WH. We've all read the articles FR posted about his nearly destroying Mass with Romneycare...which includes FREE GENOCIDE of the Unborn. And he only plans to TWEAK 0'care, not REPEAL IT! His do nothing about the ILLEGAL INVADERS IN Mass, etc. And when you vote for the lesser of 2 evils you still get EVIL. And he is a member of the small elite set of blue bloods who have been in government TO LONG and think WE owe them a PLATINUM LIFE STYLE!

DO NOT DRINK THE GOP KOOLAIDE or the Dem Koolaide is all I can say. I will NOT vote for him, as I don't drink either parties Koolaide

[Bill S]

The loss already exists. It’s just a matter of recognizing that fact.

[bray]

Because you can’t. You invested in a losing stock and when you sell the stock you take the loss. It’s called the free market and Romney is right, get out of the market.

Pray for America