The Truth About Cars » TARP http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Thu, 28 Apr 2016 19:19:05 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.4 US Treasury Begins Second Divestiture Plan Of Ally Stock http://www.thetruthaboutcars.com/2014/09/us-treasury-begins-second-divestiture-plan-ally-stock/ http://www.thetruthaboutcars.com/2014/09/us-treasury-begins-second-divestiture-plan-ally-stock/#comments Mon, 15 Sep 2014 12:00:51 +0000 http://www.thetruthaboutcars.com/?p=912722 Ally Financial, the lending artist formerly known as GMAC Financial, inches closer to freedom from government ownership as the United States Treasury begins a second trading plan to shed its shares. Automotive News reports the plan would allow the U.S. Treasury “to continue exiting the investment in a manner that balances speed of exit with […]

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Ally Financial, the lending artist formerly known as GMAC Financial, inches closer to freedom from government ownership as the United States Treasury begins a second trading plan to shed its shares. Automotive News reports the plan would allow the U.S. Treasury “to continue exiting the investment in a manner that balances speed of exit with […]

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Ally Financial Closer To Freedom Through Upcoming Stake Cut http://www.thetruthaboutcars.com/2014/08/ally-financial-closer-freedom-upcoming-stake-cut/ http://www.thetruthaboutcars.com/2014/08/ally-financial-closer-freedom-upcoming-stake-cut/#comments Fri, 15 Aug 2014 11:00:10 +0000 http://www.thetruthaboutcars.com/?p=893434 Former General Motors lending subsidiary Ally Financial is one step closer from leaving government oversight, thanks to the United States Treasury cutting its stake in the company. Bloomberg reports the Treasury will sell its stake of 75.1 million shares on the open market, the first divestiture since April 2014’s IPO. Though no word on the […]

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Former General Motors lending subsidiary Ally Financial is one step closer from leaving government oversight, thanks to the United States Treasury cutting its stake in the company. Bloomberg reports the Treasury will sell its stake of 75.1 million shares on the open market, the first divestiture since April 2014’s IPO. Though no word on the […]

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Government Reports $9.7 Billion Loss On GM Shares http://www.thetruthaboutcars.com/2013/10/government-reports-9-7-billion-loss-on-gm-shares/ http://www.thetruthaboutcars.com/2013/10/government-reports-9-7-billion-loss-on-gm-shares/#comments Tue, 29 Oct 2013 17:04:30 +0000 http://www.thetruthaboutcars.com/?p=637081 With the vast majority of the government’s General Motors shares sold, the U.S. government is reporting a $9.7 billion loss, according to a Congressional report cited by the Detroit News. With the government’s stake now down to about 7 percent, the report states that “Because the common stock sales have all taken place below Treasury’s […]

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With the vast majority of the government’s General Motors shares sold, the U.S. government is reporting a $9.7 billion loss, according to a Congressional report cited by the Detroit News. With the government’s stake now down to about 7 percent, the report states that “Because the common stock sales have all taken place below Treasury’s […]

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The TARP Is Lifting: Government Motors No More, In About A Year Or So http://www.thetruthaboutcars.com/2012/12/the-tarp-is-lifting-government-motors-no-more-in-about-a-year-or-so/ http://www.thetruthaboutcars.com/2012/12/the-tarp-is-lifting-government-motors-no-more-in-about-a-year-or-so/#comments Wed, 19 Dec 2012 15:00:30 +0000 http://www.thetruthaboutcars.com/?p=470695 It has been repeatedly suggested that GM should use its ample profits to buy back the shares held by the U.S. government (don’t forget the Canadians.). Finally, GM listens to reasons. Or, possibly, strong suggestions from Washington. GM will purchase 200 million shares of GM common stock held by the U.S. Department of the Treasury […]

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It has been repeatedly suggested that GM should use its ample profits to buy back the shares held by the U.S. government (don’t forget the Canadians.). Finally, GM listens to reasons. Or, possibly, strong suggestions from Washington. GM will purchase 200 million shares of GM common stock held by the U.S. Department of the Treasury […]

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Report: Treasury Behind Delphi Pensions Debacle http://www.thetruthaboutcars.com/2012/08/455806/ http://www.thetruthaboutcars.com/2012/08/455806/#comments Tue, 07 Aug 2012 17:21:58 +0000 http://www.thetruthaboutcars.com/?p=455806 The Daily Caller says it has emails that prove that the pensions of 20,000 salaried retirees at Delphi were terminated “solely because those retirees were not members of labor unions.” The emails, says the conservative website “contradict sworn testimony, in federal court and before Congress, given by several Obama administration figures. They also indicate that […]

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The Daily Caller says it has emails that prove that the pensions of 20,000 salaried retirees at Delphi were terminated “solely because those retirees were not members of labor unions.” The emails, says the conservative website “contradict sworn testimony, in federal court and before Congress, given by several Obama administration figures. They also indicate that […]

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Obama: Banks Should Pay For The Auto Bailout http://www.thetruthaboutcars.com/2011/09/obama-banks-should-pay-for-the-auto-bailout/ http://www.thetruthaboutcars.com/2011/09/obama-banks-should-pay-for-the-auto-bailout/#comments Mon, 19 Sep 2011 23:48:00 +0000 http://www.thetruthaboutcars.com/?p=411782   At the height of “bailout fever,” after TARP had been instituted but before the automakers had been completely bailed out, one argument that we heard a lot of from Detroit’s defenders was “how can you begrudge the manufacturing base a few billion when speculators at the banks are receiving far more support?” At the […]

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  At the height of “bailout fever,” after TARP had been instituted but before the automakers had been completely bailed out, one argument that we heard a lot of from Detroit’s defenders was “how can you begrudge the manufacturing base a few billion when speculators at the banks are receiving far more support?” At the […]

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“Government Motors”: The Exit Strategy http://www.thetruthaboutcars.com/2011/04/government-motors-the-exit-strategy/ http://www.thetruthaboutcars.com/2011/04/government-motors-the-exit-strategy/#comments Tue, 19 Apr 2011 22:21:09 +0000 http://www.thetruthaboutcars.com/?p=391993 With GM’s share price slipping below $30, the cries are going up again around the internet about the government’s stake in the bailed-out automaker. Thus far the Treasury has remained mum on its exit strategy, only indicating that it would emphasize speed rather than maximum return as it charted the course for its sell-off. But […]

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With GM’s share price slipping below $30, the cries are going up again around the internet about the government’s stake in the bailed-out automaker. Thus far the Treasury has remained mum on its exit strategy, only indicating that it would emphasize speed rather than maximum return as it charted the course for its sell-off. But […]

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The Invisible Hand Of The United States Treasury http://www.thetruthaboutcars.com/2010/11/the-invisible-hand-of-the-united-states-treasury/ http://www.thetruthaboutcars.com/2010/11/the-invisible-hand-of-the-united-states-treasury/#comments Mon, 01 Nov 2010 16:41:57 +0000 http://www.thetruthaboutcars.com/?p=371056 Ever since it became clear that the government would rescue General Motors and Chrysler, the Treasury Department has made it clear that it would stay out of “day to day” decision making at the rescued automakers. Allowing the rescued firms to operate independently was a political calculation based on the desire to keep politics from […]

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Ever since it became clear that the government would rescue General Motors and Chrysler, the Treasury Department has made it clear that it would stay out of “day to day” decision making at the rescued automakers. Allowing the rescued firms to operate independently was a political calculation based on the desire to keep politics from […]

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The Auto Bailout Explained http://www.thetruthaboutcars.com/2010/10/the-auto-bailout-explained/ http://www.thetruthaboutcars.com/2010/10/the-auto-bailout-explained/#comments Tue, 05 Oct 2010 22:39:37 +0000 http://www.thetruthaboutcars.com/?p=367588 While some have questioned why TARP was used to support the automotive industry, both the Bush  and Obama Administrations determined that Treasury’s investments in the auto companies were consistent with the purpose and specific requirements of EESA.  Among other things, Treasury determined that the auto companies were and are interrelated with entities extending credit to consumers and dealers because of their financing subsidiaries and other operations, and that a disruption in the industry or an uncontrolled liquidation would have had serious effects on financial market stability, employment and the economy as a whole. Translation: credit dependence killed the car companies. And from the 0% Red Toe Tag Sales to GM Daewoo’s $2b currency gambling loss, the glove fits. It’s a lesson that isn’t brought up often enough, and it’s one of the only passages of note in the Auto Industry Financing […]

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While some have questioned why TARP was used to support the automotive industry, both the Bush  and Obama Administrations determined that Treasury’s investments in the auto companies were consistent with the purpose and specific requirements of EESA.  Among other things, Treasury determined that the auto companies were and are interrelated with entities extending credit to consumers and dealers because of their financing subsidiaries and other operations, and that a disruption in the industry or an uncontrolled liquidation would have had serious effects on financial market stability, employment and the economy as a whole. Translation: credit dependence killed the car companies. And from the 0% Red Toe Tag Sales to GM Daewoo’s $2b currency gambling loss, the glove fits. It’s a lesson that isn’t brought up often enough, and it’s one of the only passages of note in the Auto Industry Financing […]

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Treasury: GM “Payback” Claims Not Misleading http://www.thetruthaboutcars.com/2010/04/treasury-gm-payback-claims-not-misleading/ http://www.thetruthaboutcars.com/2010/04/treasury-gm-payback-claims-not-misleading/#comments Wed, 28 Apr 2010 20:53:26 +0000 http://www.thetruthaboutcars.com/?p=354628 In response to Senator Chuck Grassley’s concern that GM’s claim to have paid back taxpayer loans was misleading, the US Treasury is now saying that it has no problem with The General’s statements. According to the Freep, a Treasury letter to Grassley explains that: GM’s decision to pay off the loan signaled the automaker did […]

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In response to Senator Chuck Grassley’s concern that GM’s claim to have paid back taxpayer loans was misleading, the US Treasury is now saying that it has no problem with The General’s statements. According to the Freep, a Treasury letter to Grassley explains that: GM’s decision to pay off the loan signaled the automaker did […]

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Auto Bailout “Progress” Defined: “Only” $28b in TARP Losses http://www.thetruthaboutcars.com/2010/04/auto-bailout-progress-defined-only-28b-in-tarp-losses/ http://www.thetruthaboutcars.com/2010/04/auto-bailout-progress-defined-only-28b-in-tarp-losses/#comments Mon, 26 Apr 2010 17:00:05 +0000 http://www.thetruthaboutcars.com/?p=354284 Last week’s announcement that had Chrysler turned a Q1 profit and GM had “repaid” taxpayer loans brought a flurry of political posturing about the success or lack thereof of the auto bailout. With Republicans laying into the auto bailout from several angles, President Obama dedicated his weekly address to a defense of industry assistance. Obama […]

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Last week’s announcement that had Chrysler turned a Q1 profit and GM had “repaid” taxpayer loans brought a flurry of political posturing about the success or lack thereof of the auto bailout. With Republicans laying into the auto bailout from several angles, President Obama dedicated his weekly address to a defense of industry assistance. Obama […]

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Grassley: Was GM’s “Payback” Shuffle About Avoiding The TARP Tax? http://www.thetruthaboutcars.com/2010/04/grassley-was-gms-payback-shuffle-about-avoiding-the-tarp-tax/ http://www.thetruthaboutcars.com/2010/04/grassley-was-gms-payback-shuffle-about-avoiding-the-tarp-tax/#comments Fri, 23 Apr 2010 14:47:09 +0000 http://www.thetruthaboutcars.com/?p=353869 While the White House and most of the media spent the last two days parroting GM’s claim that it “paid back” taxpayers, Senator Chuck Grassley was busy writing a letter to the Secretary of the Treasury [letter available in PDF here]. The three-page note opens: Dear Secretary Geithner: General Motors (GM) yesterday announced that it […]

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While the White House and most of the media spent the last two days parroting GM’s claim that it “paid back” taxpayers, Senator Chuck Grassley was busy writing a letter to the Secretary of the Treasury [letter available in PDF here]. The three-page note opens: Dear Secretary Geithner: General Motors (GM) yesterday announced that it […]

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Quote Of The Day: Payback’s A Bitch Edition http://www.thetruthaboutcars.com/2010/01/quote-of-the-day-paybacks-a-bitch-edition/ http://www.thetruthaboutcars.com/2010/01/quote-of-the-day-paybacks-a-bitch-edition/#comments Fri, 15 Jan 2010 00:55:31 +0000 http://www.thetruthaboutcars.com/?p=341882 My commitment is to the American taxpayer. My commitment is to recover every single dime the American people are owed… We want our money back and we’re going to get it. Without even getting into the politics of President Obama’s proposed “financial crisis responsibility fee,” it’s easy to see that the initiative holds a wealth […]

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My commitment is to the American taxpayer. My commitment is to recover every single dime the American people are owed… We want our money back and we’re going to get it. Without even getting into the politics of President Obama’s proposed “financial crisis responsibility fee,” it’s easy to see that the initiative holds a wealth […]

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DetN Bailout Report: White House Forced Rapid Bankruptcy, UAW Refused Hourly Pension Freeze http://www.thetruthaboutcars.com/2009/11/detn-bailout-report-white-house-forced-rapid-bankruptcy-uaw-refused-hourly-pension-freeze/ http://www.thetruthaboutcars.com/2009/11/detn-bailout-report-white-house-forced-rapid-bankruptcy-uaw-refused-hourly-pension-freeze/#comments Tue, 24 Nov 2009 15:58:23 +0000 http://www.thetruthaboutcars.com/?p=336834 On October 13th of last year, when TTAC’s Bailout Watch clocked in at a mere 115 entries, GM’s then-CEO Rick Wagoner and board members Erskine Bowles and John Bryan approached the Treasury for a “temporary” bailout. Not that we knew it at the time. “In this period of continued uncertainty in the markets, you really […]

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On October 13th of last year, when TTAC’s Bailout Watch clocked in at a mere 115 entries, GM’s then-CEO Rick Wagoner and board members Erskine Bowles and John Bryan approached the Treasury for a “temporary” bailout. Not that we knew it at the time. “In this period of continued uncertainty in the markets, you really […]

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Bailout Watch 573: GM Bailout Cost Taxpayers $12,200 Per Car http://www.thetruthaboutcars.com/2009/11/bailout-watch-573-gm-bailout-cost-taxpayers-12200-per-car/ http://www.thetruthaboutcars.com/2009/11/bailout-watch-573-gm-bailout-cost-taxpayers-12200-per-car/#comments Thu, 19 Nov 2009 17:14:52 +0000 http://www.thetruthaboutcars.com/?p=336115 This according to the National Taxpayer’s Union report “The Auto Bailout: A Taxpayer Quagmire,” authored by Rochester Institute of Technology Professor of Economics, Thomas D. Hopkins. That number includes the $52.9b taxpayer “investment” in General Motors, as well as GM’s portion of the GMAC bailout, which brings GM’s taxpayer tab to over $60b. Chrysler’s GMAC-inclusive […]

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This according to the National Taxpayer’s Union report “The Auto Bailout: A Taxpayer Quagmire,” authored by Rochester Institute of Technology Professor of Economics, Thomas D. Hopkins. That number includes the $52.9b taxpayer “investment” in General Motors, as well as GM’s portion of the GMAC bailout, which brings GM’s taxpayer tab to over $60b. Chrysler’s GMAC-inclusive […]

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Bailout Watch 571: How GM Won’t Pay Off Its Government Debt (But Will Try To Make You Think It Did) http://www.thetruthaboutcars.com/2009/11/bailout-watch-571-how-gm-wont-pay-off-its-government-debt-but-will-try-to-make-you-think-it-did/ http://www.thetruthaboutcars.com/2009/11/bailout-watch-571-how-gm-wont-pay-off-its-government-debt-but-will-try-to-make-you-think-it-did/#comments Mon, 16 Nov 2009 16:06:58 +0000 http://www.thetruthaboutcars.com/?p=335656 According to GM’s 3rd Quarter financial results announcement: GM plans to repay the United States, Canadian and Ontario government loans in quarterly installments from escrowed funds, beginning next month with an initial $1.2 billion payment to be made in December ($1.0 billion to the UST and $192 million to the EDC), followed by quarterly payments. […]

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According to GM’s 3rd Quarter financial results announcement: GM plans to repay the United States, Canadian and Ontario government loans in quarterly installments from escrowed funds, beginning next month with an initial $1.2 billion payment to be made in December ($1.0 billion to the UST and $192 million to the EDC), followed by quarterly payments. […]

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