“Government Motors” no more. The federal government is calling in its loans to General Motors, which received a taxpayer-funded injection of almost $50 billion at the height of the financial meltdown in 2008.
The auto bailout cost taxpayers a bundle, but it helped Obama win reelection.
Over the next 12 to 15 months, President Obama says the world’s largest automaker, which has been turning a healthy profit since 2010, must buy back its remaining 500 million shares from the government. But, unlike the bank bailouts, the government rescue of GM won’t result in a payout for its taxpaying saviors.
The federal government will receive only the going share prices, currently about $27, for its investment — about half of the purchase price of roughly $54 a share
GM-pay your fair share!