Friday, May 15, 2009

Market, GM and TARP Repayment

by Calculated Risk on 5/15/2009 03:55:00 PM

Stock Market Crashes Click on graph for larger image in new window.

This graph is from Doug Short of dshort.com (financial planner): "Four Bad Bears".

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

And while we wait for the FDIC on BFF ...

From the NY Times: G.M. Notifying 1,100 Dealers That They Will Be Dropped

General Motors is telling about 1,100 dealers on Friday that they will lose their franchises by late next year.
...
“They’re dealerships that are in most cases hurting, losing money and in danger of going out of business anyway,” Mark LaNeve, G.M.’s vice president for sales, service and marketing, said in a conference call. “It’s a move that people could argue should have been taken years ago ...”
Why didn't they drop these dealerships earlier? Another example of weak management.

And from CNBC: Goldman, JPMorgan May Be First to Repay TARP
Goldman Sachs and JPMorgan Chase may receive government permission as early as next week to pay back the billions in TARP money they received last fall, sources close to both banks told CNBC.
These are not the first banks to repay TARP funds (several smaller banks have already paid the money back). Goldman received $10 billion in TARP funds, and JPMorgan received $25 billion.