Barack Obama - TARP and GM

In December of 2008, GM approached Congress and asked for a bridge loan to allow them to restructure. While the House passed legislation to accomplish this, it was not passed through the Senate. Days later, the Bush administration initiated a loan through the TARP program which would provide $14 Billion in loans and stock purchases to GM and follow many of the guidelines that were sought in that legislation. This included a restructure plan that would have to be approved by the Obama administration.

The thing I find disgusting is that during the Bush era, the Left statists were outspoken against that regime's efforts. When the shoe is on the other foot, Right statists are nearly in support of the Obama regime. I can't tell the difference in policy between the GOP and the Democrats these days. If it's not gay rights or abortion, they all seem to be cut from the same cloth. Lies, lies, and more lies...

In February of 2009 GM presented their plan to the Obama administration. The plan was seen as preferential to union workers by bondholders and many stated their intention to oppose it. In March of 2009 President Obama announced that he was not accepting the viability plan put forth by GM, but that he was authorizing more funds to keep the company afloat. President Obama also initiated programs to provide funds to companies that supply parts to GM and Chrysler.

GM was placed into bankruptcy on June 1, 2009 and the company was supplied with an additional $30.1 Billion dollars, bringing the total loans and stock purchases to $50 Billion. The company was made a private entity at that time.

The bankruptcy restructuring plan agreed upon by the government and GM gave the US government a 60% share in the company and gave the Canadian government a 12% share. The United Auto Workers gave up a health and savings plan worth $20 Billion in exchange for a 17.5% share in the company and over $8 Billion in debt and preferred stock. Bondholders held $27 Billion in stock prior to the collapse and received only a 10% equity share in the new GM company.

So, GM has only paid back half of the bailout promoted by Obama as saving American jobs (though unemployment has only increased since taking office). GM has paid some money back, though most of that is coming from the Fed through increased money supply, driving inflation up (and by direct effect, stealing from everyone holding US dollars and investments in dollars).

Full article: http://www.thepoliticalguide.com/Profiles/President/US/Barack_Obama/Views/TARP_and_GM/