GM & Chrysler: Thanks for the $12,200 gift
Each taxpayer’s gifted…errr, loaned, GM & Chrysler $12,200 as a part of the “too big to fail” government bailout.
The GAO has determined that the long-term viability of GM & Chrysler is unclear. The US Treasury’s own analysis shows that “the circumstances necessary for the companies to reach market capitalizations high enough for Treasury to fully recover its equity investment are unlikely.” Put more bluntly, the U.S. government does not expect to recover the taxpayers’ funds.”
The ownership stake in Chrysler & GM is as follows: “General Motors has been transformed into a new public corporation owned by just four shareholder groups – the U.S. Treasury (60.8%), the employees’ agent (17.5%), the Canadian government (11.7%), and the old GM’s bondholders (10%); the restructured Chrysler (not a public company) also has just four owner groups – the U.S. Treasury (9.9%), the employees’ agent (67.7%), Fiat (20%), and the Canadian government (2.5%). The first audited financial statements from the two new firms are not expected until March-April 2010; until then only limited financial information about their operations is available.”
The full report is “The Auto Bailout: A Taxpayer Quagmire” by Thomas D. Hopkins.