GM stock buy-back will cost taxpayers about $15 billion

In order for them to recover their entire $30 billion still in the company, GM’s share price should be exactly double of what it is paying Treasury today. This means that if taxpayers sell the remaining 300 million (19 percent of the outstanding shares) at $27.50, they will be in the red by about $15 billion – give or take a few. And this of course does not count the $15 billion or so in illicit tax write offs that the administration handed GM during bankruptcy.

Also, although the $27.50 share price represents a nearly 8 percent markup over the closing price yesterday, it is $5.50 below GM’s IPO price – and at least $13 to $17.50 below what many analysts two years ago had hoped it would stabilize at.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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