Outgoing GM CEO: Taxpayers Gained On Bailout
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WASHINGTON (AP) — Retiring General Motors Co. CEO Dan Akerson says the government bailout of his company was a net gain for taxpayers — even though they lost $10.5 billion.
Akerson says if GM had gone under, taxpayers would have had to pick up the company’s $26 billion pension obligation. The government also would have lost billions in tax revenue and benefit payments.
He says GM won’t repay the $10.5 billion because the government agreed to make loans and take company stock in exchange for the bailout.
GM repaid its loans and the government sold the last of its stock last week The government spent $49 .5 billion to save GM in 2008 and 2009.
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