re: #491 Killgore Trout

Government Watchdog: ‘Extremely Unlikely’ Taxpayers Will Recoup TARP Money

US Government Might Not Recoup Loans To GM

WASHINGTON -(Dow Jones)- Financial analysts are casting doubt on General Motors Corp.’s (GM) ability to repay billions of dollars in U.S. government loans, given the company’s debt load and sales outlook.

GM has acknowledged it can’t repay the U.S. loans in the original time frame. It is proposing that the Treasury Department accept majority ownership (51%) of the company in exchange for wiping out about $10 billion in debt. Discussions are ongoing.

But even with a large equity stake, the government risks losing at least some of the $15.4 billion it has lent GM since January, analysts said.