{
  "id": "R41978",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R41978",
  "active": true,
  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 428906,
      "date": "2014-03-18",
      "retrieved": "2016-04-06T20:34:43.606093",
      "title": "The Role of TARP Assistance in the Restructuring of General Motors",
      "summary": "In 2008 and 2009, collapsing world credit markets and a slowing global economy combined to create the worst market in decades for production and sale of motor vehicles in the United States and other industrial countries. Concern about the economic impact of a possible collapse of large parts of the U.S. automobile industry led both the Bush Administration and Members of Congress to seek legislative avenues to assist the automakers. Ultimately, General Motors Corporation (Old GM) and its successor General Motors Company (New GM) together received more than $50 billion in federal assistance through the U.S. government\u2019s Troubled Asset Relief Program (TARP). Using this assistance to restructure, GM closed plants, cut its hourly and salaried workforce, shed three brands, reduced debt, introduced new vehicles, and implemented changes to reduce retiree legacy costs. \nIn exchange for this financial support, the U.S. Treasury received 60.8% of the new company, with the rest of New GM held by the United Auto Workers (UAW) retiree health care trust fund, the governments of Canada and Ontario, and holders of Old GM\u2019s bonds. GM was not the only company that received TARP funds as a result of the 2008-2009 financial crisis. More than 700 institutions received support, with the U.S. government taking ownership stakes in five large companies: GM, Chrysler, GMAC (now called Ally Financial), AIG, and Citigroup. In general, ownership of private companies was not a goal of TARP, and the U.S. government has sought to reduce its ownership stakes when possible while maximizing the taxpayers\u2019 return from the assistance.\nThe federal government sold its shares in General Motors Co. in different ways over time, including (1) a large initial public offering (IPO) in late 2010, (2) sale of stock directly to GM in December 2012, and (3) ongoing sale of stock into the public market. For the U.S. government to have fully recouped the nominal value of its $50.2 billion assistance, the government would have had to receive an average price of more than $45 per share for its holdings. In reality, the government received between $27.50 and $38.32 per share as it sold stock between December 2010 and December 2013. GM stock reached its highest point since the 2010 IPO, nearly $42 a share, after the government finished selling its GM stock in December 2013. \nIncluding both the sales of stock and principal recoupment, the government realized $11.2 billion in losses on the assistance for GM, which could be partially offset by $0.7 billion in net income for a final shortfall of $10.5 billion. With the final sale of stock, all of New GM\u2019s connections to TARP are complete. Restrictions arising from TARP participation, including a ban on New GM owning corporate jets, certain reporting requirements, and executive pay limits, have been eliminated.",
      "type": "CRS Report",
      "typeId": "REPORTS",
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      "topics": [
        {
          "source": "IBCList",
          "id": 4602,
          "name": "Manufacturing Policy"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc276856/",
      "id": "R41978_2014Jan16",
      "date": "2014-01-16",
      "retrieved": "2014-03-05T18:18:19",
      "title": "The Role of TARP Assistance in the Restructuring of General Motors",
      "summary": "This report provides background information on General Motors' capital crisis in 2008-2009 and discusses the U.S. government assistance to the motor vehicle industry.",
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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      "topics": [
        {
          "source": "LIV",
          "id": "Automobile industry",
          "name": "Automobile industry"
        },
        {
          "source": "LIV",
          "id": "Automobile production",
          "name": "Automobile production"
        },
        {
          "source": "LIV",
          "id": "Automobile industry workers",
          "name": "Automobile industry workers"
        },
        {
          "source": "LIV",
          "id": "Government buyouts",
          "name": "Government buyouts"
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc462782/",
      "id": "R41978_2013May09",
      "date": "2013-05-09",
      "retrieved": "2014-12-05T09:57:41",
      "title": "The Role of TARP Assistance in the Restructuring of General Motors",
      "summary": "This report analyzes the crisis leading to Old GM's bankruptcy, the U.S. government's assistance to, and role in, the new company, the progress that General Motors Company has made since it was created, and the recoupment of the U.S. government's assistance for GM.",
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      "topics": [
        {
          "source": "LIV",
          "id": "Automobile industry",
          "name": "Automobile industry"
        },
        {
          "source": "LIV",
          "id": "Automobile production",
          "name": "Automobile production"
        },
        {
          "source": "LIV",
          "id": "Automobile industry workers",
          "name": "Automobile industry workers"
        },
        {
          "source": "LIV",
          "id": "Government buyouts",
          "name": "Government buyouts"
        }
      ]
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc815249/",
      "id": "R41978_2013Jan03",
      "date": "2013-01-03",
      "retrieved": "2016-03-19T13:57:26",
      "title": "The Role of TARP Assistance in the Restructuring of General Motors",
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc806273/",
      "id": "R41978_2012Sep07",
      "date": "2012-09-07",
      "retrieved": "2016-03-19T13:57:26",
      "title": "The Role of TARP Assistance in the Restructuring of General Motors",
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}