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General Motors paying back all of its 6.7 billion loan, thoughts?

General Motors Co. plans to pay all of its $6.7 billion in government loans by the end of June, Chairman and CEO Ed Whitacre Jr. said Tuesday.

The automaker plans to make quarterly installments starting this month with a $1.2 billion payment, Whitacre said. He said GM could repay the loan sooner but that hasn't been decided.

GM has received $52 billion total in aid from the government as it navigated bankruptcy protection earlier this year. Of that total, $45.3 billion was converted into equity, giving the government a 61 percent stake in the automaker.

Whitacre said GM has no timetable yet for an initial public offering of stock, which would be necessary for the government to recoup the rest of its investment in the company. He made the remarks during a roundtable discussion with reporters in Detroit.

Answer Question
 
sweet-a-kins

Asked by sweet-a-kins at 11:28 AM on Dec. 15, 2009 in Politics & Current Events

Level 34 (67,502 Credits)
Answers (35)
  • Can we use it to pay down the deficit?
    mancosmomma

    Answer by mancosmomma at 11:35 AM on Dec. 15, 2009

  • I don't know, I know alot of the money has been paid back. I believe some is going into job growth and the majority is going to pay down the deficit, I think I read 145 billion....but I will have to see if I can find the figure again...

    sweet-a-kins

    Answer by sweet-a-kins at 11:42 AM on Dec. 15, 2009

  • Bank of America is also paying back.....good job!
    Anonymous

    Answer by Anonymous at 12:11 PM on Dec. 15, 2009

  • I think they better hold off on the payback until the libs are out of control. That way they won't blow it on pork.
    Carpy

    Answer by Carpy at 12:12 PM on Dec. 15, 2009

  • Bank of America is also paying back.....good job!


    ALot od the banks did, I think Citigroup and wellsFargo just announced they are repaying as well

    sweet-a-kins

    Answer by sweet-a-kins at 12:18 PM on Dec. 15, 2009

  • I think they better hold off on the payback until the libs are out of control. That way they won't blow it on pork.


    What do you think th erepublicans will do with it ?

    sweet-a-kins

    Answer by sweet-a-kins at 12:18 PM on Dec. 15, 2009

  • JPMorgan Chase (JPM, Fortune 500), Goldman Sachs (GS, Fortune 500), American Express (AXP, Fortune 500), Bank of New York Mellon (BK, Fortune 500), State Street (STT, Fortune 500) as well as regional banking giants Capital One (COF, Fortune 500), BB&T (BBT, Fortune 500) and U.S. Bancorp (USB, Fortune 500) all said they will pay back TARP funds. (Insurer MetLife also was not required to raise capital but it did not receive any TARP money.)

    Investment bank Morgan Stanley (MS, Fortune 500), which was the only financial firm that regulators did ask to raise money after the stress tests, confirmed it also won approval from the Treasury Department to pay back $10 billion.

    Chicago-based Northern Trust (NTRS, Fortune 500), which took in $1.576 billion in TARP funds but was not part of the bank stress tests, also Tuesday said it won government approval to exit the program.
    sweet-a-kins

    Answer by sweet-a-kins at 12:24 PM on Dec. 15, 2009

  • That's right---Wells Fargo and US Bank....others. It seems to be working.... ;-)
    Lindalu2

    Answer by Lindalu2 at 12:48 PM on Dec. 15, 2009

  • It was Bush who originally bailed out the banks. Guess he was right.
    Anonymous

    Answer by Anonymous at 12:59 PM on Dec. 15, 2009

  • It was Bush who originally bailed out GM, too.

    WASHINGTON — The emergency bailout of General Motors and Chrysler announced by President Bush on Friday gives the companies a few months to get their businesses in order.
    Anonymous

    Answer by Anonymous at 1:04 PM on Dec. 15, 2009

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