GM Pays Back Government Loans
Yep. We’ll never see that money again. And certainly not 5 years ahead of schedule.
Just like we’ll never see the TARP money again.
GM got a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as it went through bankruptcy protection last year. At first the entire amount of U.S. aid was considered a loan as the government tried to keep GM from going under and pulling the fragile economy into a depression.
But during bankruptcy, the U.S. government reduced the loan portion to $6.7 billion and converted the rest to company stock, while the Canadian governments held $1.4 billion in loans. Those loans were repaid Tuesday, five years ahead of schedule.
The automaker hopes to repay the remaining $45.3 billion to the U.S. government and $8.1 billion to Canada via a public stock offering, perhaps later this year. The U.S. government now owns 61 percent of the company and Canada owns roughly 12 percent.
And just like with the TARP repayments…we’ll make a profit.
In fact, we’ve had $186B paid back and less than $200B is outstanding. So, if we get it all back in the next 2 years…will we get some recognition from conservatives and libertarians that doing this was better than letting our banking system collapse and driving us into a second Great Depression?
I’m just saying…