Tag Archives: tarp

Troubled Asset Relief Program – Total Cost $32B

The Troubled Asset Relief Program (TARP) of 2008 and other desperate actions let the Department of the Treasury promote stability in financial markets through the purchase and guarantee of “troubled assets.” It was a latter part of the Emergency Economic … Continue reading

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Ally Bailout Terms Met – Allowing for Common Dividends

This removes the restriction on Ally of offering common equity distributions. Ally’s stated objective is to pay a dividend and start a share repurchase program in 2016. Continue reading

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Treasury No Longer Owns GM Common Stock

Treasury in a statement said it recouped a total of $39 billion from the original GM investment. Taxpayers in 2009 gave GM $49.5 billion in loans ($50 billion including loans for the Supplier and Warranty Programs) in exchange for $2.1 billion in preferred stock and a 60.8% equity stake in the reorganized company. Continue reading

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Economist Says Auto Bailouts Saved More than 4 Million Jobs

A newly released report by the Center for Automotive Research, aka CAR, says that the auto bailouts conducted during the 2009 by the U.S. federal government saved more than 4 million jobs. It also saved U.S. taxpayers or avoided the loss of $105.3 billion in transfer payments and the loss of personal and social insurance tax collections or 768% of the net investment of the thus far $11.8 billion. Continue reading

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Treasury Out of General Motors Stock by Year End

During 2009 when the Bush Administration’s Great Recession was in full force and worsening, the U.S. government via taxpayers gave GM $49.5 billion in loans ($50 billion including loans for the Supplier and Warranty Programs) in exchange for $2.1 billion in preferred stock and a 60.8% equity stake in the reorganized company. Treasury has been selling the stock since late last year. A quick back of the envelope calculation at current market rates shows that taxpayers will ultimately lose ~$10 billion. Continue reading

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Treasury Recoups another $1.2 Billion from GM

The U.S. Treasury during October continued its sale of GM common stock receiving net proceeds of ~$1.2 billion without saying how much it received per share. Continue reading

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GM Declares Dividend on Series B Preferred Stock

General Motors (NYSE: GM) will pay a quarterly dividend of $0.59375 per share on its Series B mandatory convertible junior preferred stock on 2 December 2013 to Series B holders of record as of 15 November. Continue reading

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Treasury Selling More GM Common Stock

The U.S. Department of the Treasury is continuing its sales of GM common stock starting today by launching a third “pre-defined written trading plan.” Terms were not disclosed. Continue reading

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Treasury Selling More GM Common Stock

The U.S. Department of the Treasury today announced that it would sell another 30 million shares of General Motors Company common stock in a public offering in conjunction with GM’s return to the S&P 500 index. Continue reading

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Treasury to Sell 242 Million Shares of General Motors Common

To recover the full loan Treasury would have to sell the remaining GM shares at more than $77. GM is currently trading at ~$32 per share. This means that taxpayers will take a loss on the bailout of GM. Continue reading

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Treasury Now Selling More General Motors Stock at a Loss

The U.S. Department of the Treasury announced today that it is starting to sell its 300.1 million remaining shares of General Motors common stock with the initiation of a pre-arranged written trading plan. Under the unpublished plan, Treasury will proceed with its December 2012 announcement that it will sell its GM shares “in an orderly fashion” and fully exit its remaining GM investment within the next 12-15 months, subject to market conditions. Continue reading

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Ally Financial Pays Off Last $4.5 Billion of Debt Issued Under TLGP

The U.S. Treasury, via taxpayers, currently holds about 74% of Ally common equity, and $5.9 billion in mandatory convertible preferred securities, which have a dividend rate of 9%, after a more than $17 billion bailout. Ally at the end of Q3 2012 had about $182 billion in assets, so it increasingly looks like taxpayers have a good chance at getting their money paid back, perhaps turning a profit. Continue reading

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U.S. Treasury to Sell GM Stock at a Loss During the Next 15 Months

It appears that Treasury is making a very bad decision here based on ideology, not good old American pragmatism. It was ideologues who opposed the successful TARP bailouts, and now Treasury – the government agency that is supposed to understand money and stock markets – is also taking an impractical position based also on ideology. Since the end of September taxpayers earned more than $1.5 billion from the increase in value of GM stock. Why dump and run now? No surprise here at AutoInformed that most Americans are disgusted with the way government handles their money. Continue reading

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U.S. Treasury Sells Final Shares of AIG Common Stock. Taxpayers Earn $22.7 Billion! More Profits to Come from the Bailout

Along with today’s stock sale, the return to date on the Federal Reserve and Treasury’s combined $182 billion commitment to bailout AIG during the financial crisis is now $22.7 billion. Treasury has now earned a positive return of $5 billion and the Federal Reserve has posted a profit of $17.7 billion. Continue reading

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GM Buys Overseas Finance Business from Ally for $4.2 Billion

GM said that with addition of Ally’s international operations, GM Financial will be able to provide credit for customers and dealers in markets that make up about 80% of GM’s global sales. In essence, GM is recreating GMAC. Continue reading

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