Tag Archives: bailouts

Detroit Lobbyist John Bozzella Joins Offshore Auto Trade Group

Posted on 24 March 2014 by Ken Zino

Private equity firm Cerberus placed a large bet during Bozella’s Chrysler tenure by buying controlling interest in Chrysler from Daimler. Prior to that, it bought 51% ownership of GMAC, the financing arm of General Motors. These bets ultimately failed when Chrysler entered bankruptcy in 2009. Both GMAC and GM went into bankruptcy as well. Continue reading →

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AIG Bailout of $182 Billion Paid Back. Taxpayers make at least $12B

Posted on 10 September 2012 by Ken Zino

The U.S. Department of the Treasury announced it is selling 553,846,153 shares of its American International Group (AIG) common stock at $32.50 per in a public offering. The proceeds to Treasury from the common stock sales are expected to be ~$18.0 billion. This means that the transaction locks in at least a $12.4 billion positive return on the $182 billion in Treasury and Federal Reserve loans and commitments to AIG. The bailout loan will be fully paid off in what remains an unpopular (but extremely effective) example of government intervention in a failed marketplace. Ideologues still refuse to admit that the TARP and associated government actions saved the U.S. and perhaps the global economy. It certainly – without question – saved the U.S. auto industry and this includes companies that received no loans. Continue reading →

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