Treasury needs an exit plan for GM, Ally: watchdog

trymee submitted on 7/12/2012 Official Bell & Ross Timestamp: 2:34:18 PM

2 user comments | Views : 2,586 | Category: Misc News | Source: | SOURCE: www.4wheelsnews.com

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Due to the ailing market conditions, the U.

S. Treasury’s move to sell stakes in General Motors Co. and its one-time consumer financing arm has been dismal. A government watchdog told a House panel that the Obama administration will need

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Treasury needs an exit plan for GM, Ally: watchdog

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trymee

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Steve

The Feds bought GM shares at well above market value (last trade of "old GM," and IPO opening trade for "New GM"). It was just a way to pump huge amounts of money into GM and not have it be a loan. Sort of like buying your college kid's sneakers for $10,000: You didn't loan or give him any money...you just made a purchase. Ditto with GM.

Analysts knew from the start that this was the case, and they also said the Feds are inlikey to break even in the lifetime of any voting citizen.

So yeah, an exit strategy makes sense. It's just a question of when do you cut your losses, accept the public scorn for what you've done, and move on.

— Steve (View Profile)

Posted on 7/13/2012 1:08:52 PM | reply to this comment | Votes: 2   

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