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The General Motors (GM) bailout!

In 2008, the US government provided a bailout package to General Motors and Chrysler, two of the largest automakers in the United States, to prevent their collapse and preserve jobs. The bailout was part of the Troubled Asset Relief Program (TARP) created by the Emergency Economic Stabilization Act of 2008.

Here's a brief summary of the bailout and its repayment:

The Bailout:

• In September 2008, the US Treasury Department provided GM with a $49 billion bailout package, which included:
  • $30 billion in loans
  • $13 billion in equity investments
  • $6 billion in loan guarantees
• Chrysler received a similar bailout package, with a total value of $12.5 billion
• The bailout was intended to help the companies restructure, reduce debt, and invest in new technologies to become more competitive

Repayment:

• GM repaid its bailout loans in 2014, with interest, at a total cost of around $43 billion
• The company repaid the loans through a combination of cash and stock
• In 2013, GM issued an initial public offering (IPO) to raise capital, which helped to repay some of the bailout loans
• In 2014, GM repaid the remaining bailout loans, with the US Treasury Department selling its remaining shares of GM stock

Timeline:

• September 2008: GM receives bailout package
• 2010: GM emerges from bankruptcy and begins to repay bailout loans
• 2013: GM issues IPO to raise capital
• 2014: GM repays remaining bailout loans

Impact:

• The bailout helped to preserve jobs and prevent the collapse of the US auto industry
• GM and Chrysler were able to restructure and become more competitive, leading to improved financial performance and increased investment in new technologies
• The bailout also helped to stabilize the broader economy, as the auto industry is a significant contributor to US GDP and employment

Overall, the GM bailout was a complex and controversial issue, but it ultimately helped to preserve the US auto industry and prevent widespread job losses.