September 11, 2012 |
Is General Motors Co. losing $49,000 on every Chevrolet Volt electric car it sells? If so, it could be bad news for taxpayers who helped bail out GM and now own a third of an automaker that has seen its shares plunge 30% since it went public in 2010. It could also highlight how much of a political lightning rod GM and the Volt have become since the automaker's federal bailout in 2009 and as the presidential election approaches, analysts said. "The Volt as a brand has become politicized," said Jeremy Anwyl, vice chairman of auto information company Edmunds.com.
September 10, 2012 |
Is General Motors losing $49,000 on every Chevrolet Volt electric car it sells? If so, it could be bad news for taxpayers who helped bail out GM and now own a third of an automaker that has seen its shares plunge 30% since it went public in 2010. A Reuters report Monday said GM's plug-in hybrid was a big money-loser. GM, though, disputed the contention, saying Reuters' research "is grossly wrong" and accusing the news agency of bad math. The automaker said the news agency incorrectly "allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program, which is how business operates.” The debate over the cost of the Volt is highlighting how much of a lightning rod GM -- and the Volt -- have become since the automaker's federal bailout in 2009 and as the presidential election approaches, analysts said.
August 9, 2012 |
WASHINGTON — Buoyed by rising home prices, Fannie Mae reported a second-quarter profit of $5.1 billion and said that for the second straight quarter it did not need more federal bailout money for that period. The improving real estate market was the main driver of one of the most profitable quarters ever by Fannie, the huge housing finance company seized by the government in 2008 along with sister firm Freddie Mac as the collapse of the housing market pushed them near bankruptcy.
April 13, 2012 |
WASHINGTON -- The Obama administration expects to recoup all the bailout money spent on banking and insurance firms, auto companies, mortgage finance companies and struggling homeowners during and after the 2008 financial crisis -- and likely turn a profit. By 2022, the bailouts are expected to produce a profit for taxpayers - as much as $163 billion in a best-case scenario. That's a stark turnaround from predictions of hundreds of billions of dollars in losses in the immediate aftermath of the unprecedented interventions.
April 5, 2011 |
Through the depths of the recession, major Wall Street banks and other financial institutions spent nearly $70 million in California to try to defeat or water down California legislation aimed at slowing real estate foreclosures. The money, spent on lobbying fees and political contributions, came from 2007 to 2010 — at the same time the banks were getting billions of dollars in federal taxpayer bailouts to keep them from collapsing. A report commissioned by the Alliance of Californians for Community Empowerment criticized the banks and mortgage lenders for spending the money in the political arena rather than working harder to keep people in their homes.
January 14, 2011 |
Treasury Secretary Timothy F. Geithner says the government "remains optimistic that taxpayers will get back every dollar of their investment in AIG. " Bailed-out insurance giant American International Group Inc. moved closer to repaying the government for its rescue by completing a stock-conversion deal with the Treasury Department on Friday ? a key to unwinding the federal stake in the company. Treasury converted the preferred shares in AIG it received as part of the complex bailout into 1.655 billion shares of common stock, increasing the government's ownership stake to 92% from 80%. The department plans to sell the shares over time to recoup its investment, now estimated at $68 billion, and end taxpayer support of the company.