Article here: http://www.nbcnews.com/business/gm-buys-back-stock-taxpayers-may-lose-billions-1C7659301 From that article:
Oh, and nothing like going back to the ways that got you bankrupt in the first place:
General Motors will repurchase 200 million shares of its own stock currently held by the U.S. Treasury, with the White House announcing plans to sell off its remaining 300 million shares within the next 12 to 15 months. The automaker will pay $27.50 for the shares it will acquire, a 7.9% premium over the $25.49 closing price on December 18, 2012 – but that is also a sharp discount from the $33 price set during GM’s initial public offering in November 2010. And it means taxpayers will lose billions on the sale. Treasury has been under strong pressure to announce an exit plan – an issue that failed GOP presidential candidate Mitt Romney repeated frequently during his campaign. He called on the White House to sell off its stake last summer, though at that point GM was trading as low as $18.72 a share. At that price, the government would have received about $1.5 billion less than it will now get, a total of $5.5 billion for the initial 200 million share sell-off. Industry analysts had estimated a sale price of $53 would be needed to recoup the government’s full investment in General Motors, however.
Is anybody else facepalming here? I think it is a great idea that GM buys back their shares. But they should be doing so at a value that repays what was lent to them, not this farce that screws us all for their financial mis-management.
As part of the latest move, the government will remove some of the restrictions it had placed on General Motors as part of the 2009 bailout which ultimately totaled $49.5 billion. While Akerson last week said the government had “stayed out” of GM’s day-to-day management, contrary to some early concerns, he nonetheless chafed over limits the White House had placed on senior management salaries. It also barred GM – and Chrysler, which also received a 2009 bailout – from owning corporate aircraft. Salaries and bonuses will almost certainly rise to match those at competing makers, such as Ford, industry observers anticipate. And GM could announce plans to acquire new jets within a matter of weeks.