The Independent Daily
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An Online Journal of Independent Views & Discussion
June 7, 2013
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Published in Northern Arizona, USAhttp://www.TheIndependentDaily.commailto:editor@TheIndependentDaily.comshapeimage_2_link_0shapeimage_2_link_1

General Motors: A 39 Billion Dollar Taxpayer Loss* and Who Benefitted

(GM’s Prez, Ackerson, nets $7.5 Million of Our Money)

The good news is that we (you and I) are no longer owners of General Motors Corporation. The bad news is manifold:

Our investment in GM has resulted in a most recent loss of $10 Billion (US).

Our total loss of taxpayer funds* is $39 Billion (US).

GM remains inept in it’s approach to innovation, making a series of bad investments, and failing to re-capture the premier position as the World’s Number One Automobile Maker, having lost that distinction last year to Toyota.

Who benefitted from this government-investment fiasco? Once again, just as in the $780 Billion US Banking outlay, not you and I. Certainly the stockholders did – institutional and individual – having had their investment asses pulled once more from the breech.

Investors such as the United Auto Workers whose Medical Benefits Trust holds 140 million GM shares worth more than $5.7 Billion as of today.

Individuals like Daniel Ackerson, GM’s Chairman and Chief Executive Officer. Here’s the interesting thing about Ackerson: He doesn’t believe in GM as a long-term investment. In fact, anything beyond a month or two is too far-term for the company’s leader-in-chief.

Granted Stock Options, Mr. Ackerson began 2012 acquiring 14,120 shares at No Cost as part of his contract with GM, (March 31, 2012). On the same day he disposed of his 14,120 newly-acquired shares for a profit of $359,354.

Here’s more for 2012: June. 14,534 options at Zero Cost, disposed the same day for a profit of $285,157. September. 29,941 at Zero Cost, disposed the same day for a profit of $685,948. December. 33,866 at Zero Cost, disposed the same day for a profit of $957,053.

More for 2013, to-date: March. 39,970 at Zero Cost, disposed the same day for a profit of $1,113,963. June. 45,539 at Zero Cost, about one-half of which was disposed the same day for a profit of $736,143, with the remainder a few weeks later for a profit of $987,592.

In September 30 he was awarded an additional 56,492 shares at Zero Cost which today carries a value of $2,310,522.

So, your investment in Daniel Ackerson, only for the last two years, has placed about $7.5 Million in his pocket, exclusive of salary and other compensation. $7.5 Million in stock which had grown in value substantially as a result of our GM Bailout money, and Not owing to the strategic vision of its leadership. Quite the contrary, Ackerson hasn’t a modicum of vision, as reflected in GM’s performance and international standing.

Yet, Obama speaks regularly regarding the growing abyss in this country between the Rich and the Poor, and feigns interest.

Merry Christmas, Mr. Ackerson.

(This is only part of the story. Other beneficiaries include Thomas Stephens, GM’s Vice Chair; and Stephen Girsky, Vice Chair of something-or-other, worth several million of our taxpayer funds as well.)

  1. *Total loss estimated all TARP funds directed to Automotive and related.

Sources: Edgar Financial, Associated Press, General Motors.