Quote:
Originally Posted by bigearl
This gets confused all the time and needs to be clarified.
GM got a loan from the Government. Additionally the Government bought a portion of GM. The loan was paid off, however the Government still owns a substantial piece of GM. That's the 33billion part. The loan was paid off, now they want to sell the company out to individuals as a stock IPO so the government can get their money back. GM technically doesn't 'OWE' this money, since it's not a loan.
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That is how I have always understood it. The government has been paid in full with cash and company equity. Now the equity just needs to sold so the cash can go back into the treasury.
GM does not need to pay anymore money from their bank accounts.