If You Believe GM Repaid Their Debt, Then Think Again!

This story really just makes me think that we need more corporate regulation. It seems that when business is left to its devices they seem to manipulate and play games with money and rules. Sounds familiar? Kinda like wall street reform.
I know I will get deboosted but I don't really care.
T

1 topic 4 post.

I guess you missed the MANY articles that discuss the fact that it was $8B cash that was repaid --- the govt still holds a 61% stake in stock worth $43B. If the market (and industry) continues to be optimistic about GM's future, the govt will no-doubt recoup the loan plus a descent profit when GM is ready to re-enter the stock market.

The layman may not know the difference, but from a corporation's view, they are correct. Companies are financed by either debt or equity, the debt piece they paid back was a loan from the government. The remainder of the government's stake was equity which does not have to be paid back. When the company does well and its stock goes up, the government makes money and can cash out. The government did that to show confidence and help put a floor under the stock price. An equity stake "from a corporation's view" is not a loan even if the money was borrowed from someone. The government's view is different because they're simply looking at how much they shelled out regardless of where it ended up on the GM's balance sheet. However, Ed is correct.

Too big to fail bailouts have to stop.