Financial Statements = Worthless Paper

[Buickman]

Previously filed financial statements "should no longer be relied upon," GM said in its filing, attributing the adjustment to changes in hedge fund accounting.

full text at www.detnews.com

[Chaz_23]

Isn't this a GM tradition?
C'mon man, I'm waiting for your post on a possible Chrysler purchase by GM.

[Buickman]

Originally Posted by Chaz_23

Isn't this a GM tradition?
C'mon man, I'm waiting for your post on a possible Chrysler purchase by GM.

Simply another way for the banks to siphon dollars. How much will the two companies pay for "advice"? I'm really tiring of the shenanigans.

[rhvfd10]

Buickman: what say you about all this merger business?

[Buickman]

Originally Posted by rhvfd10

Buickman: what say you about all this merger business?

What people don't see are the hundreds of millions paid to the likes of Morgan, Merrill, Sachs, Deutsche, Lazard, etc... Witness the $140,000,000 paid recently to lawyers alone for the Delphi BK. Between the banks and the lawyers, we're lucky there's anything left. How much do you suppose we paid for "advice" just to not but Nissan? How much did we pay lawyers and bankers over the Fiat deal? The biggest problem at GM is the lack of accountability for failure. The biggest trouble behind GM is the control of the company by 6 large institutions who own two thirds of the stock rule the Board. Do you suppose KK selling out on the same day the GMAC deal closed was by coincidence? I don't. Funny how it got buried in the papers, Red Ink Rick got his $14 Billion, and the shareholders received nothing. Now the parasites will suck out the capital as they have done for years.

[GM-10]

Originally Posted by Buickman

Funny how it got buried in the papers, Red Ink Rick got his $14 Billion, and the shareholders received nothing. Now the parasites will suck out the capital as they have done for years.

Excuse me....are you insinuating that Rick Wagoner personally recieived 14 billion and the shareholders got nothing?

[Buickman]

Originally Posted by GM-10

Excuse me....are you insinuating that Rick Wagoner personally recieived 14 billion and the shareholders got nothing?

Figuratively.

[Solstice006]

I like your selective reading capabilities.

This article does, in fact, state that the financial statements can no longer be relied upon. The part you're missing is that it also states "General Motors Corp. has turned up an additional $200 million in earnings previously unaccounted for between 2002 and 2006 in a review of its financial statements that is almost complete". THAT is why the statements can no longer be relied upon.

[zete]

For a change the adjustment is positive. This won't impact the stock price, as would have a negative adjustment on prior earnings. If you're going to make a mistake better this way than what Nortel did!

[GM-10]

Originally Posted by Buickman

Figuratively.

weak. just another pseudo slanderer.

[unkillsam]

Originally Posted by Solstice006

I like your selective reading capabilities.

This article does, in fact, state that the financial statements can no longer be relied upon. The part you're missing is that it also states "General Motors Corp. has turned up an additional $200 million in earnings previously unaccounted for between 2002 and 2006 in a review of its financial statements that is almost complete". THAT is why the statements can no longer be relied upon.

"He he he, nice job Buickman" says unkillsam

meanswhile buickman is busy inserting foot in mouth

"Check your facts before you bash "Red Ink Rick" because it makes you look like a hate mongering troll when you bash the CEO of GM for an accounting error which is going to ADD an extra 200 million dollars to the book. If you need to criticise someone, criticise the CFO and his staff for not doing their jobs properly." says unkillsam

"The biggest problem at GM is the lack of accountability for failure." says buickman.

"Again, how is Wagoner not doing his job properly by making sure GM's financial reports are correct. AND, in doing so finds out that there was an extra 200 million on the books that they did not know about. Stuff like this happens once and a while to much smaller companies. With a corporation as huge as GM, something like this happening is not only possible, but probable." says unkillsam

Buickman sulks in the corner knowing he is wrong but not willing to admit defeat. <insert negative comment about Rick Wagoner here>
<insert negative comment about unkillsam here>
Then come up with a new super-secret way to twist the facts

[DanCBJMS1988]

Children! Children! Please calm down!

[Buickman]

SEC investigations combined with repititious restatements indicates that the accounting at General Motors is suspect at best, criminal at worst. Either way, the financial reporting has no validity...PERIOD! The only things we know for sure are that sales continue to decline.

[DanCBJMS1988]

So what? A lot of corporations have had bad accounting, and this trend is only getting worse, not better. Now many companies are stating that they are restating their financial statements. Does this concen me? Yes. GM is only a drop in the bucket compared to others. Remember Enron?

[Havasavana]

An article in the WSJ on January 29 indicated potential problems for GM regarding GMAC operations:

"Lehman Brothers auto analyst Brian Johnson said in a note Friday that complications related to estimating the value of GMAC's ResCap mortgage unit could cost the auto maker $300 million to $400 million in cash charges in the first half. ResCap has long been viewed as the crown jewel in the GMAC portfolio, but it has fallen under industrywide pressure that has hurt many traditionally strong lenders and may have diminished ResCap's value.

In GMAC's case, potential provisions for loan losses from subprime mortgages may need strengthening, and residual interest in trading securities may need mark-to-market adjustments, Mr. Johnson said."

The article said GM had $26.4B in cash at the end of 2006. GM had just over 1 million vehicles in inventory as of January 15, and at an average of $20,000 per, that would be $20B in inventory. For what it's worth.