GM declared bankruptcy this morning, and over the coming few months (the administration says it expects the process to go as quickly as it has for Chrysler), the company will be kept alive by even more taxpayer money as it goes through the restructuring process.
Will it work? Who knows. Here, at least, is a quick rundown on the deal's numbers.
The U.S. government has committed to lending GM an additional $30.1 billion, which, on top of the $20.6 billion already lent to GM, brings us to $50.7 billion in total aid.
Of that total, $8.8 billion will remain as debt, but the U.S. will take a 60 percent equity stake in the new GM to recoup the rest. Meanwhile, Canada will get a 12 percent stake in exchange for $9.5 billion in aid it will give GM. A trust for UAW retirees will also get a 17.5 percent stake in the company, and bondholders will get 10 percent, according to a government fact sheet.
Altogether, the U.S. bailout of Chrysler and GM has so far led to a commitment by the federal government of over $85 billion, a toll that includes $5 billion in financing to support auto parts suppliers and $15.5 billion in loans to Chrysler.
Other links this morning:
G.M. to Seek Bankruptcy and a New Start (NYT)
In Cox Years at the SEC, Policies Undercut Action (WaPo)
Congress's Afterthought, Wall Street's Trillion Dollars (WaPo)
Chrysler Gets Judge's Approval for Asset Sale (WaPo)
GM Bailout Has Future Tax Break Worth Billions (AP)
The 31-Year-Old in Charge of Dismantling G.M. (NYT)
Fed Mortgage Efforts Prove Costly (WSJ)
Even in Crisis, Banks Dig In for Fight Against Rules (NYT)