Granted Lutz had retired from GM by that point
If you know of any bank or private equity source that was willing to provide financing for a GM bankruptcy in 2009, please provide the name.
With a full guarantee by the federal government???
Practically any bank with an acceptable adjusted (risk weighted) capital ratio would have been happy to put a credit risk free asset earning 200-250 basis points over treasury securities on their balance sheet.
The GM loan from the government carried an interest rate of 7%, plus giving up ownership through the warrants the government took.
Treasuries in 2009 were averaging around 3-4%.
All of the big banks were trying to get acceptable loans in 2009. They weren't able to do so for the most part so they were either buying treasuries or just leaving their surplus funds on deposit with the Fed. Just look at the Fed's consolidated reports on banks in 2009. There was surplus liquidity.
A risk free loan, meaning its risk weighting would be similar to a treasury security (20%) but it would earn significantly above the treasury yields would have been in great demand.
Plus, with the Fed guarantee, GM could have issued commercial paper or bonds at less than the 7% they had to pay the taxpayers for their loan.
Hell, Warren Buffett would probably have made the loan with the fed guarantee! He loaned billions to Bank of America, GE and Goldman Sachs from 2008-2010 WITHOUT
Otherwise, STFU, about me and my opinion.