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Taxpayers Still Owed Billions from GM Bailout

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  • Description

    FBN's Liz MacDonald on GM's payback to taxpayers from the government bailout.

  • Duration 2:21
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We'll -- Treasury Department has -- -- bulked an offer from General Motors to buy out the government's stake in the company.

The reason GM's offer amounted to a huge loss for tax payers literally -- yeah.

Bottom line still without copper yes that's just fine analyst -- journal story today GM General Motors is -- Fox Business that has been in talks with treasury since the beginning of the year to unload the shares are here's the deal here's the bottom line.

Further north for taxpayers to breakeven those years we now have to -- -- 53 dollars a share but our twenties detectors when -- seven billion dollar stake is underwater right now.

This its shares are trading at around twenty for box another word is.

Baby treasuries try to cut a deal.

To get those shares sold and would that would they post a loss -- -- -- -- now yes.

It he sold all 500 million shares -- -- -- 141000000015.

Billion dollar loss.

If you -- the -- clothes on Friday gonna -- -- like at nine billion dollar loss then there was talk also treasures saying aren't will also -- shares and a 35 dollar thirty ish range.

He still gonna see losses of anywhere depending on the size of the slug of the shares that are sold.

Anywhere from seven billion dollars to nine billion dollars in losses so GM we asked him why now why you guys -- talking this year about -- the shares.

They say because of the TARP rules on executive pay they can't attract executives they need to turn around -- company they said it's essentially telling Fox Business it hurts.

And attracting talent we're capped at the pay we can offer they're saying it's hard to convince someone to show up to work for the good of the country.

And essentially that's why we want to get out from under -- -- -- is also talking a Fox Business.

Timothy -- -- side is that they're saying the government should not be a long term investor the government is not a hedge fund.

We didn't do this GM bailout to make a profit we did it to bail out the auto industry and effective ministry -- is saying we may lose 25 billion dollar -- the bottom line is.

For all of -- the bailouts including Fannie and Freddie.

And also ally financial and GM guys -- could see still looming losses on these -- of Fannie and Freddie.

A 142 billion dollar still -- after dividends returned back into the government.

Again GM 27 billion ally nearly 151000000000 and 300 banks still -- nearly ten billion dollars to taxpayers so win win in terms of jobs perhaps.

But when it by constant dollar amount owed to taxpayers and may be premature to say it's a win win right now live -- -- -- thank you -- the last much.

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