Factbox: Taxpayers in deep water on GM investment

Thu Nov 18, 2010 3:44pm EST

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(Reuters) - General Motors Co may have the world's biggest initial public offering, but U.S. taxpayers were more than $9 billion underwater on the government-funded restructuring at its current share price on Thursday.

A breakdown of the paper loss follows.

* The U.S. Treasury loaned GM about $49.86 billion from late 2008 through 2009 to restructure the company and finance its move through bankruptcy and beyond.

* Before accounting for the Treasury proceeds from the IPO, GM had repaid about $9.74 billion to the government. Those repayments included unused loans, the purchase of Treasury preferred shares, and dividends and interest. That left taxpayers owed a little more than $40.1 billion.

* Including overallotments, Treasury will recover more than $13.6 billion by selling 412.3 million common shares, leaving taxpayers owed about $26.5 billion. Treasury would need to sell its remaining 500.1 million share-stake at an average price of about $53 for taxpayers to be repaid.

* With GM shares trading at $34.50 Thursday afternoon on the New York Stock Exchange, taxpayers were facing an $18.50 per-share deficit on their remaining stake, or about $9.25 billion.

SOURCES: Treasury public reports, GM SEC filings

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Comments (58)
ConnieG wrote:
This could become another Fannie and Freddie. How insane to invest in a company that IS bankrupt when you can invest in Ford for half the price that took no money and is not bankrupt. With the union owning a chunk how does anyone think this is going to work out?

Nov 19, 2010 8:06am EST  --  Report as abuse
rhyytinen wrote:
Just another obama quagmire. Obama is the master of disaster but he don’t care cuz he gots his $$$$$$$$$.

Nov 19, 2010 8:23am EST  --  Report as abuse
SoWhSooWhat wrote:
What did you expect, the only part of Wall Street that Obama understands is the part where they send him campaign contributions.

Nov 19, 2010 8:29am EST  --  Report as abuse
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