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Obama pledges 8B for nuclear power plant


TheMadCap

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You do realize that there is a difference between paying back the loans and paying back the capital injections don't you? Two totally different things Pbills, just google it up and you will see the difference.

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You do realize that there is a difference between paying back the loans and paying back the capital injections don't you? Two totally different things Pbills, just google it up and you will see the difference.

 

 

As far as I know the government was not looking for a share of GMs equity capital. My links were just to state that ALL of the banks have not paid back their loans.

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As far as I know the government was not looking for a share of GMs equity capital. My links were just to state that ALL of the banks have not paid back their loans.

Treasury loaned GM $20 Billion if I remember correctly and then injected $50 Billion in exchange for a 70% stake in the company. Shareholders got wiped out, GM bondholders were screwed with a 10% slice of the pie and Unions received a 20% stake in the company.

 

In regards to the Banks, they weren't loans, they were capital injections in exchange for preferred shares and in some cases common stock, there were also loan loss guarantees on some of their outstanding debt obgligations if things were to really go further down south.

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So enlighten me, what is the bank bailout to be labeled as?

Figured I'd do some of the leg work for you, http://money.cnn.com/news/storysupplement/...index.html#TARP

 

Automotive Industry Financing Program

 

Government GM capital injection $49.9 B

 

payed back $361 Million

 

Chrysler Capital injection $15.2 B

 

payed back $280 Million

 

GMAC Capital injection $13.5 B

 

payed back 0

 

Grant it, this is from Nov. of 2009, so it's roughly 3 months old but things havn't changed dramatically since then.

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Treasury loaned GM $20 Billion if I remember correctly and then injected $50 Billion in exchange for a 70% stake in the company. Shareholders got wiped out, GM bondholders were screwed with a 10% slice of the pie and Unions received a 20% stake in the company.

 

In regards to the Banks, they weren't loans, they were capital injections in exchange for preferred shares and in some cases common stock, there were also loan loss guarantees on some of their outstanding debt obgligations if things were to really go further down south.

 

 

Wouldn't the GM shareholders have to give up the remaining value of their shares if they would gone through restructuring privately?

 

Thanks for clearing up the information about the banks. So how would you respond to people who state that the banks have paid back their loans? Besides stating they weren't loans.

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So enlighten me, what is the bank bailout to be labeled as?

 

What magox said. Private placement of equity.

 

That was one of the issues about the ridiculous congressional attempts at clawing back bonuses: the government passing legislation to violate private employment contracts that the government as owners of the company are responsible for upholding was just a little bit unkosher.

 

Wouldn't the GM shareholders have to give up the remaining value of their shares if they would gone through restructuring privately?

 

Not necessarily. That usually happens, just because when a company can't even pay its creditors it has nothing to give the shareholders anyway. But not always.

 

And that's beside the point that the government's heavy-handed "reorganization by fiat" threw the entire concept of seniority of interest off a cliff. That idiotic decision right there contributes not immaterially to the current lack of job creation.

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