But if you listen to Obama, all the bailout money has been paid back. The GM bailout was one of the many bailout scams from Team Obama. GM owes close to $25 billion to US taxpayers but instead of paying down their loan they buy back their lending company.
General Motors (GM) last week started buying out Ally Bank’s auto lending operations in an effort to reverse months of lagging growth.
Ally Financial Inc., formerly known as GMAC, is GM’s former auto-lending arm. Although it split from the automaker in 2006, it still garnered $17 billion in taxpayer money during the auto bailout.
GM announced on November 21 its repurchase the bank’s lending operations in Europe and Latin America at a cost of $4.2 billion. Taxpayers own about 75 percent of Ally, which has only repaid $2.5 billion of its bailout. GM still owes U.S. taxpayers nearly half of its $50 billion bailout.
Industry insiders criticized the Treasury Department for not placing Ally in bankruptcy or selling it off before the election, which would have forced the administration to acknowledge the impossibility of fully recovering bailout money.
Christopher Whalen, cofounder of Institutional Risk Analytics, told theWashington Free Beacon in April that the Obama administration was motivated by politics rather than the responsible stewardship of taxpayer dollars.
“Geithner and the rest of Treasury doesn’t want to admit that it is a mess and they’ve been lying to us for three years,” Whalen said in April. “They’re waiting until after the election [to sell the bank].”
GM announced the successful buyout two weeks after the Nov. 6 election. The deal has helped boost confidence in the company on Wall Street. Fitch Ratings upgraded GM’s BB issuer default rating to a positive outlook on Wednesday.