Comments on: New NRE poll – Why did the Treasury sell its GM preferred shares early?

By: dad29

dad29 — Fri, 19 Nov 2010 15:09:26 +0000

In reply to Shoebox. Yah, except for Steve's FIRST item: GM apparently has no friggin' internal controls. Meaning that the dartboard-method of determining cash balances just MIGHT not promote the survival of the COmpany.

By: Shoebox

Shoebox — Fri, 19 Nov 2010 13:11:57 +0000

The only quibble I have with “both” is that we would have to assume a level of circumspection on behalf of the government benefactors that would allow them to believe that GM could sink. I doubt that that thought, at least while they are still involved, has crossed their mind. Therefore, I’m inclined to believe that they do believe that the overhang from the preferred is a problem. In fact, there has been a lot of chatter the past week or so about the overhang in the form of GM not being able to pay a dividend while this existed.

By: steveegg

steveegg — Thu, 18 Nov 2010 20:06:48 +0000

In reply to Tom Blumer. If the WSJ is on it today, they're on it again. Somewhere in my feed reader is news of that from a couple weeks again. If memory serves, GM is getting a $45 billion-over-20-years writeoff worth $15 or so billion.

By: Tom Blumer

Tom Blumer — Thu, 18 Nov 2010 20:00:38 +0000

When we tote up the total cost of all of this, we should not forget what you have just cited, nor should we forget the tax-loss carryforwards Treasury allowed new GM to have that are surely worth billions (I believe WSJ is on this today).