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November 19, 2010

Obama: Taxpayers Could Recoup Cost of GM Bailout
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The federal government has begun unloading its stake in the bailed-out
auto giant General Motors. On Thursday, GM raised more than $20 billion
dollars on the first day of a public offering. The U.S. government
rescued GM from bankruptcy with a $50 billion dollar government bailout
last year. At the White House, President Obama said the government could
even turn a profit once its entire stake in GM is sold off.

President Obama: "Today, one of the toughest tales of the recession took
another big step towards becoming a success story. General Motors
launched itself as a public company, cutting the government’s stake in
the company by nearly half. What’s more, American taxpayers are now in a
position to recover more than my administration invested in GM."

Despite Obama’s claims, there are doubts about how much taxpayers will
be able to reclaim. The government still owns half its initial 60
percent stake in GM and must now wait six months before shedding more
company stock. While shares closed at $34 dollars, the government will
have to sell the remainder at $53 dollars a share to break even.



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