Government Motors

Monday, June 01, 2009

General Motors filed for Chapter 11 bankruptcy this morning marking the ending a 100-year reign and the 4th largest bankruptcy in US history. The US government will take a 60% equity stake in the company in exchange for $30 billion more in cash infusions.

Obama said the government will be a 'reluctant shareholder' and will look to 'get out quickly' leading one to ask what 'reluctant' and 'quickly' actually mean. He claims these actions are part of a 'viable, achievable plan that will give this iconic company a chance to rise again.'

The best response was simply put by House Republican Leader John Boehner of Ohio, 'Does anyone really believe that politicians and bureaucrats in Washington can successfully steer a multinational corporation to economic viability?'

Amazing tidbits:
Market Capitalization at 2000 Peak: $56 billion v.
Total US Government Stake: $50 billion

Total Assets: $82.3 billion v.
Total Liabilities: $172.8 billion


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