He is saying that GM paid back all their loans...and that they didn't get a bailout ..but a loan. They got a bailout...they still owe billions. How they can say they're now making profits and are able to give bonsues reminds me of someone who paid me back $1,000....when they got their student loan saying they were now 'financially able'. They still have to pay back the money...they're not in any better shape than they were.
Here's how the numbers work:
Original bailout: $50 billion.
GM repaid loan portion, $6.7 billion.
GM to buy back government preferred shares: $2.1 billion.
GM repayment of government interest and dividends: $700 million.
Total repayment before IPO: $9.5 billion.
What GM still owes before IPO: $40 billion.
Government likely to make $13.6 billion in IPO by selling 412 million of its 912 million common shares at $33 each. This assumes bankers exercise options for more shares.
What GM owes after IPO: $26.4 billion.
To get $26.4 billion, government's remaining shares must sell for $53 per share, $20 more than the IPO price.http://abcnews.go.com/Business/wireStory?id=12176572