Did Gm Pay Back Its Bailout Money

Universal Motors Pays Back $8 One thousand million to Taxpayers Ahead of Schedule

Only how much TARP money has yet to be returned?

April 21, 2010— -- General Motors today $8.1 billion in government loans repaid, five years forrade of schedule and ennead months subsequently the plagued automobile whale declared failure, signaling that the automake may beryllium on the path to lucrativeness.

"As of today, GM has repaid in full and interest," said GM Chief executive officer Ed Whitacre to a crowd assembled on floor of a GM engraft in Kansas City, Kan.

To smiles and applause from workers, Whitacre also declared G's be after to invest $257 one thousand thousand in that found and another in Detroit to ramp heavenward production of the Chivy Malibu.

Cheering on the floor of a Gramme factory would have been unthinkable a year ago, when the company was on a down spiral towards its bankruptcy in June 2009.

When information technology emerged from restructuring last yr, GM had reborn most of the $52 billion in federal bailout funds into party stock, going a $6.7 billion outstanding lend from the U.S. Treasury. The Canadian government Lent the company an additional $1.4 billion.

Benefits of Bankruptcy

With ownership of 61 percent of GM's shares, North American country taxpayers nonetheless have billions invested in the automobile Divine, only analysts say there's reason to believe that investment could now pay off. If the government can sell its stake in GM for to a higher degree $45 jillio, so taxpayers could actually make a profit.

"It would calculate dreadfully dear if the Democrats could say, 'We saved a bunch of jobs, we got a successful company, and they taxpayers got cashed plunk for,'" said John Wolkonowicz, a senior psychoanalyst at HIS Global Insight. "That would equal immense."

Bankruptcy offered GM a hazard to shed unprofitable product lines and expensive legacy costs, including large union pensions. Along with a direction shakeup that came with the bailout, a railway line of well-reviewed vehicles is now catching on with the public.

"General Motors has undergone a revolution in top management," said Micheline Maynard, an auto author for the New House of York Times. "Because they assume't have loyalties to the past, they butt go in with fresh ideas."

Although GM still confused $3.4 billion in the fourth canton of 2009, analysts expect that the company will start up turning a profit this twelvemonth and could follow with a overt offering of GM stock.

Administration Officials Praise Turnaround

The Obama administration was already taking credit for the bailout's success nowadays, noting in a composition that the turnaround of Gramme and Chrysler saved an estimated 1 million jobs from elimination last year.

"This turnaround wasn't an accident of history," wrote Colorless House economical adviser Larry Summers on the White House Web page. "It was the final result of well-advised and politically difficult decisions made by President Obama to provide GM and Chrysler -- and indeed the auto industry -- a life line."

Exchequer Secretary Tim Geithner echoed Summers, locution in a financial statement: "This continuing progress is a positive planetary hous for our car investment funds -- not only more funds recovered for the taxpayer merely as wel countless jobs saved and the flourishing stabilization of a vital industry for our country."

Billions in Bailout Funds Motionless Owed to Taxpayers

Despite the billions paid back by GM today, in that respect are billions more bailout dollars still outstanding.

Of the $14 billion relinquished to Chrysler, just $1.8 billion has been returned. Economists read that Chrysler was in a deeper fix than Gram, but there's still a luck that taxpayers testament get down their money backbone.

And then, of course, at that place are the banks.

Taxpayers spent $205 billion to save the Sir Joseph Banks, and $136 billion has already been salaried back. That leaves a $67 billion IOU from Wall Street to the federal governing.

Citigroup, which received $45 billion, is the only major bank that has heretofore to pay rear complete of its TARP lend. Citi has thusly far repaid $20 billion and still owes other $25 billion.

Economic expert Mark Zandi of Moody's Economy.com said taxpayers will get their money back from the banks, but IT will take time.

"I think a year from like a sho, certainly two geezerhood from now, everyone will have paid US back what they owed us," Zandi said.

As for insurance policy monster AIG, which acceptable $70 billion straight? Tax payers are still waiting for that money to equal returned.

The Associated Press and Reuters contributed to this report.