Here I am with Senator Rick Santorum
Daily Archives: November 18, 2010
Today, GM began to trade as a publicly-held company on the New York Stock Exchange. This is a big deal for a number of reasons. First, it means that taxpayers are being (partially) repaid for the auto bailout. Prior to GM’s initial public offering (IPO), $9.5 billion of the GM bailout funds were repaid, according The Wall Street Journal. This stock offering raises an additional $20 billion, much of which goes to the U.S. Treasury to pay back the bailout. That means that, at best, GM has repaid around $30 billion of the $49.5 billion bailout.
Secondly, GM going public again means that the auto bailout, no matter who distasteful you may find it, was a success (somewhat). GM, which prior to bankruptcy and bailout was an uncompetitive company with a butt load of debt, labor costs, and inefficiencies, has emerged as a competitive player in the global marketplace. The goal of the bailout, as I see it, was to take a company that was shedding jobs, prevent it from going under, and transform it into a job creator. GM is doing just that by hiring workers for new manufacturing plants and adding more shifts at existing plants.