According to a new analysis, the U.S. government would have to sell all its shares in General Motors at an average price of $133.78 a share in order to break even on its stake in the automaker. Should U.S. taxpayers be worried?
It's looking less likely that taxpayers will recoup the $50 billion spent to bail out General Motors. A government watchdog says the U.S. Treasury would need to sell its shares for $133.78 each to break even.
Propped up by billions of government dollars during the financial crisis, AIG is reportedly in talks with the U.S. government to accelerate its exit plan and regain its independence. In recent months, the insurer has been selling off assets to strengthen its financial position.
The new incoming CEO will need to convince shareholders that GM, which is only a year out of bankruptcy and has posted just two profitable quarters, is a worthy investment. He'll also have to make sure the carmaker's dramatic turnaround is built to last.
In a response to the Financial Crisis Inquiry Commission, Goldman said it priced AIG's collateral on the best available market information.
In the late '80s and early '90, more than 1,000 savings & loans failed in a financial crisis that cost the government $220 billion to resolve. By contrast, it looks like TARP will only cost the government $105 billion. So is the current financial crisis only half as bad? Not bloody likely.
Banks are up in arms over language added to the proposed financial regulation overhaul that would make big financial firms shoulder some of the cost if government-backed mortgage lenders Fannie Mae and Freddie Mac go bust.
The financial reform bill contains a "bank tax" creating a fund to cover the costs of a big financial firm's collapse. Banks worry new changes mean the fund may have to cover any bailout of Fannie Mae and Freddie Mac -- who are staggering under problem loans from banks.
Dutch insurer Aegon announced it will restructure operations in Britain and look into strategic options for Transamerica -- its U.S.-based life reinsurance arm.
As the firms remove their NYSE listings, what survives is the mountain of unpaid bills that could saddle taxpayers with as much as $1 trillion in bad debt. And what's remains unapparent so far is any cogent plan for dealing with the mess.
Morgan Stanley and JPMorgan Chase are expected to win the lead underwriting roles for General Motors' initial public offering. The government holds a 61% stake in the bailed-out carmaker, and an IPO could raise as much as $10 billion.
A government watchdog group Thursday criticized efforts by the New York Federal Reserve under the leadership of Timothy Geithner for failing to exhaust all options to arrange a private-sector rescue of American International Group (AIG) before launching a taxpayer-funded bailout in 2008.
When GM descended into bankruptcy last year, the automaker had excess plant capacity, more brands than it needed and -- so it thought -- too many dealers. But the new GM is backtracking on that last item: The company plans on reinstating 900 car dealerships it had sought to shut down.
Ford, GM and most other carmakers reported double-digit sales gains in May, as consumers responded to signs of an economic recovery and strong manufacturer incentives. Toyota was the notable exception, recording a much smaller gain as it struggles with its recall woes.
General Motors' May car sales advanced 16.6% compared to a year ago, as the resurgent automaker continues to rebound from its descent into bankruptcy.
The entity consisting of parts of the "old" Chrysler has repaid the U.S. $1.9 billion of the $4 billion it got during the 2008 financial crisis. While less than face value, Treasury says it's "significantly" more than it expected to recover.
