Treasury gets $11.7 billion from GM stock sale

[1776Forever]

Source: AP

Nov 23, 3:51 PM EST

Treasury gets $11.7 billion from GM stock sale

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) -- The Treasury Department says it has received $11.7 billion from the sale of 358.5 million shares of General Motors stock.

Treasury announced that the net proceeds from the GM stock sold last week were delivered on Tuesday. Treasury officials said that the government could receive an additional $1.8 billion assuming the underwriters exercise options to purchase an additional 53.8 million shares of GM common stock within 30 days of the initial stock offering.



Read more: http://hosted.ap.org/dynamic/stories/U/US_GM_IPO?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2010-11-23-15-19-13

[MadMaddie]

1. Will the News Media report this?

[SkyDaddy7]

2. It might get a 30sec blip and then...

They will interview Rick Perry or Newt Gingrich for 5min to hear why it was a failure!

[MadMaddie]

3. I bet they go to ole mama grizzly

[SkyDaddy7]

11. They probably would if...

Sarah Palin was not avoiding all press except FOX "News" where her questions are given to her before the interview & the questions themselves are geared toward her talking points so there is not a lot of prep needed.

One side of me says Sarah Palin could with ease get the Republican nomination but could never win a national election...However, I am not so sure about that now. The GOP never had to explain to the public what their plan for the future is or how they can reconcile lowering the deficit with huge tax cuts to the wealthy. Yet they got put right back into power!

I fear for this country!

[MadMaddie]

15. I too fear for this country.

They know not what they ask for because of their ignorance and hate.

[golfguru]

8. They won't cuz Treasury paid $45/share and received $33/share

[Skink]

4. They sent it to Afghanistan.

[1776Forever]

5. Unfortunately that is more truth then false. n/t

[Bozita]

6. Lame duck Congress should use these billions to fund extension of unemp comp right fucking NOW!

How could any GOPer vote against that?

[Skink]

7. So you are saying invest American IPO dollars in America..

thinking..:beer:

[Bozita]

10. The proceeds from the GM IPO will easily PAY FOR the extension.

The GOPers always considered the auto loans as a bailout as in "bankster bailout." Money gone forever.

Well, it wasn't a bailout. It was mostly loans. Unlike the bankster charade.

And these heretofore unexpected billions in govt coffers allow those fiscally prudent GOPers to enthusiastically vote for the extension. After all, that's what they "wanted" to do, isn't it?

[northzax]

14. it wasn't even loans

it was straight equity. basically the US government functioned as a corporate raider, buying a company with strong pieces that was otherwise floundering. unlike a KKR or Ichan, of course, the government invested for the long term growth potential of the company. GM was a seriously undervalued asset, once certain stumbling blocks were removed (like a slight improvement in the economy, and some passed on legacy costs from poorly (form the perspective of the company, not the worker) negotiated contracts.) the company had some great technology in the pipeline (the Volt) and a massive market share. pare the company down, reduce non-useful sectors, and pay off a huge chunk of the legacy costs, and you start to see a future. look at Ford, at the same time the government took over GM, ford was trading at $1.50. since then it's up 1500%. personally, I wish they'd waited another 6 months for the IPO, I think the stock will be in the 40s by then. and yes, I have put my money where my mouth is, I bought some shares this week. the market in general is trending upwards, and the auto market as well (Tesla is up 150% since their IPO this summer) another two quarters of solid growth in GM would have done a lot to restore confidence.

and the bankster charade you refer to was also a lot of equity deals, any firm taking TARP money included equity in the deal. the government bought AIG, for instance, at pennies on the dollar, sold off some profitable parts and made a profit on the deal. same thing would have happened to AIG in bankruptcy, but mush more slowly, and taking others down with it. so far, TARP has made money on long term investments disposed of. maybe, of course, only the valuable assets have been sold, and UST is holding hundreds of billions of junk at this time, but it's doing well so far.

[lonestarnot]

9. Underwriters.

[RUMMYisFROSTED]

12. Five days of funding for the MIC.

:woohoo:

[saigon68]

13. Good thing there are no hungry or homeless in amerika

otherwise they might spend the money on them