Most Despised American Companies

[Lynnie]

My guess is GM cares because their financial future depends on it. A very po'd middle America has a direct effect on their bottom line. Not so with the financial firms, hence the billions in bonuses.

I think you're exactly right. I have mixed emotions with regard to GM and still leaning toward not supporting their brand until the Unions are abolished.

I am the most disgruntled with the big dogs: AIG, Goldman and Fannie simply because the infractions were so well thought out and egregious.
I've never been a fan of BOFA due to their usury fees and charges, then getting in bed with Angelo Mozillo! WTH~~~~~~

I think we are going to see more changes with the financial industry based upon the Goldman news. Only good can come out of this.

 

[30ashopper]

Government Motors

Of course the GM ad doesn't mention all of the creditors (including the government) that they screwed by going bankrupt. They were able to eliminate most of their debt.

We also own a majority of their common stock - over 60 percent. We (taxpayers) received that in return for forgiving billion in loans, something GM isn't mentioning in it's commercials! The federal government now has a vested interest in seeing GM succeed.

The unions also own a a large chunk as well, which means the unions have a vested interest in the federal government mainaining it's ownership control.

Expect the U.S. Government to be heavily involved in the decision making within the company.

 

[Miss Critter]

Expect the U.S. Government to be heavily involved in the decision making within the company.

God help 'em.

 

[30ashopper]

We own quite a few companies now, I keep wondering when people will start talking about unwinding all this.. doesn't seem to be a hot topic at the moment.

GM: Government owns 60.8 percent, a $40.7 billion investment.
Chrysler: Owns 9.9 percent after investing $12.5 billion.
GMAC: Owns 56.3 percent after investing $17.2 billion.
Citigroup: Owns 27 percent after investing $25 billion.
Small banks: $69.1 billion invested in 641 small banks.
AIG: Owns 79.8 percent in return for $47.5 billion invested. Federal Reserve has lent an additional $63 billion.
Fannie Mae: Owns 79.9 percent after providing $75 billion.
Freddie Mac: Owns 79.9 percent after providing $57 billion.

 

[Lynnie]

We own quite a few companies now, I keep wondering when people will start talking about unwinding all this.. doesn't seem to be a hot topic at the moment.

GM: Government owns 60.8 percent, a $40.7 billion investment.
Chrysler: Owns 9.9 percent after investing $12.5 billion.
GMAC: Owns 56.3 percent after investing $17.2 billion.
Citigroup: Owns 27 percent after investing $25 billion.
Small banks: $69.1 billion invested in 641 small banks.
AIG: Owns 79.8 percent in return for $47.5 billion invested. Federal Reserve has lent an additional $63 billion.
Fannie Mae: Owns 79.9 percent after providing $75 billion.
Freddie Mac: Owns 79.9 percent after providing $57 billion.

Holy Smokes! Don't get me started. I look forward to the day we all have to pay capital gains tax on our respective investments!
Funny thing with GMAC, since they had to recharter themselves as a bank to receive bailout $.

 

[30ashopper]

Found this in Forbes this monring - GM paid the loan back, with money the Obama administration gave them. :roll:

I'm all for GM recovering, I usually purchase american cars, but I'm feeling just a little pi**ed about those commercials after reading this article. Plus, it turns out they're back at the feeding trough, looking for more money, at a lower interest rate.

In short, GM is using government money to pay back government money to get more government money. And at a 2% lower interest rate at that. This is a nifty scheme to refinance GM's government debt--not pay it back!

GM boasts that, because it is doing so well, it is paying the $6.7 billion five years ahead of schedule since it was not due until 2015. So will there be an accelerated payback of the rest of the $49.6 billion investment? No. That goal has been pushed back, as it turns out.

In order to recover that investment, the government has to sell its equity. It plans to do that only when GM becomes a publicly traded company once again. GM was hoping to turn a profit by the end of 2010 and float an initial public offering this winter. However, GM Chief Financial Officer Chris Liddell, when queried about that timeline a few days ago, demurred. The offering will be made, he said, "when the markets and the company are ready."

Still Government Motors
Forbes.com - Magazine Article