Why GM's Repayment Leaves Taxpayers Short


Here's something you may not know, but it's true: General Motors has fully paid back the $49.5 billion in loans that it received from the U.S. government as part of its bailout in 2009.

Strong products like the all-new Chevy Silverado have helped GM stock outpace the market this year, but its gains won't be enough to fully repay taxpayers. Photo credit: General Motors Co.

GM paid back that loan with a mix of cash and stock, as agreed -- in fact, it made the last payments well ahead of schedule. But here's the problem: At least right now, the stock isn't worth enough to fully repay the amount of the loan.

The government says that it would have to get more than $90 a share for its remaining stock to make things whole, but GM stock isn't trading anywhere near that level. In this video, Fool contributor John Rosevear looks at the latest on GM's repayment status and at how much the government is likely to lose on its "investment" in General Motors.

The article Why GM's Repayment Leaves Taxpayers Short originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of General Motors. Follow him on Twitter at@jrosevear. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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