U.S. Treasury Plans To Sell All GM Stock by Year's End | Edmunds

U.S. Treasury Plans To Sell All GM Stock by Year's End


Just the Facts:
  • The U.S. Treasury Department said Thursday that it expects to sell its remaining shares of General Motors by the end of the year, depending on market conditions.
  • Treasury announced it had completed the sale of 70.2 million shares of GM common stock and had "recouped a total of $38.4 billion for taxpayers from the GM investment overall."
  • That leaves a shortfall of about $10 billion on the automaker's 2009 bailout.

WASHINGTON — The U.S. Treasury Department said Thursday that it expects to sell its remaining shares of General Motors by the end of the year, depending on market conditions.

Treasury announced it had completed the sale of 70.2 million shares of GM common stock and had "recouped a total of $38.4 billion for taxpayers from the GM investment overall."

That leaves a shortfall of about $10 billion on the automaker's 2009 bailout.

Treasury said if average daily trading volumes continue at recent levels, it will complete the sale of its remaining shares of GM by the end of the year.

"Treasury's investment in the American auto industry was part of President Obama's broader response to the financial crisis, and it helped save more than 1 million jobs," said Treasury Deputy Assistant Secretary Tim Bowler. "Had we not acted to support the automotive industry, the cost to the country would have been substantial — in terms of lost jobs, lost tax revenue, reduced economic production, and other consequences.

"Our actions have enabled the industry to rebound."

GM said that while Treasury's equity stake in the company "draws to a close, our work to transform GM continues."

"We're making great progress in our efforts to make the most of this second chance by building outstanding cars and trucks, creating jobs and reinvesting in our country," GM said in a statement.

Edmunds says: GM is poised to drop the dreaded "Government Motors" moniker.

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