Two key Obama allies are staking their financial future in the fortunes of British soccer powerhouse Manchester United.
The multi-million dollar cash injection gives the hedge fund magnate an 8 percent stake in the team. Taxpayers own a 26 percent stake in the struggling automaker, which has failed to repay $27 of its $50 billion bailout.
GM’s stock has fallen about 40 percent since its record-setting IPO, leaving bailout watchdogs to conclude that taxpayers may be saddled with a multi-billion loss and a potential second bankruptcy. GM stock would need to more than triple in value in order for the American people to recoup their “investment.”
The automaker’s lending arm, Ally Bank, is in the midst of its own bankruptcy, and still owes taxpayers more than $14 billion of its $17 billion bailout.
The cash injections have not helped Man U’s performance, however. The English soccer giants fell to lowly Everton 1-0 last week.