This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

At What Cost Did the U.S. Government Rescue GM?

Those who care about simplifying the U.S. Tax Code deserve to know why parties shaping the historic transactions decided that the benefit of "tax loss carry-forwards" should flow to investors in New GM securities, rather than evaporate as was long-standing practice.

Instead of explaining how New GM did in the first quarter of 2014 compared to the first quarter of 2013, or in 2013 compared to 2012, management should make a full accounting for actual performance against original estimates.

Contrasting How the Federal Government Investigated Toyota and GM

Federal regulators and law enforcement personnel should ensure that manufacturers and dealers only sell vehicles in the U.S. that conform to reasonable safety standards.

Details now dribbling out from GM and from regulators already paint a disturbing picture going well back before 2009 of GM's attitudes towards assuring safety, about bad choices individuals made and about egregious lapses in the effectiveness of management and board level oversight.

For lesser offenses, Toyota (TM) suffered mightily starting early in 2010, just as New GM was struggling to mount a recovery.

Recently, Toyota entered into a deferred prosecution agreement and agreed to pay a $ 1.2 billion fine.

Those involved with restructuring GM assert that they knew nothing in 2009 concerning the faulty ignition switch safety issues that swirl now.

Yet how could no one have known enough about these issues affecting GM inside the federal government while they so actively investigated GM's toughest global competitor?

An unrefuted suggestion of unequal treatment under our laws creates a potent license to practice favoritism against American companies in key foreign markets.

Empowered Investigators Need to Re-Examine the Entire GM Timeline

Books have been written and a presidential election won asserting that General Motors was truly saved through extraordinary actions led by the Obama administration and chiefly financed by American taxpayers.

The timeline is complicated, and the accounting is complex, especially if we challenge investigators to consider more than what happened just with money invested to resurrect New GM.

However, the bottom-line result is simple to explain. Before Nov. 16, 2010, U.S. government officials embraced a plan to sell New GM securities on a basis where taxpayers ultimately failed to earn a fair and reasonable financial return on capital sums invested.

The public deserves to know much more than we presently do.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Charles Ortel is managing director of Newport Value Partners LLC, which provides independent investment research to professional investors.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,945.22 -138.58 -0.81%
S&P 500 1,977.45 -10.53 -0.53%
NASDAQ 4,446.3050 -25.8030 -0.58%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs