US Government Sells More Than Half of Its Remaining Shares in GM

The United States Treasury Department has held to its word and reduced its stake in General MotorsGMUnited States of America, 1998 > present8 models
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from 60.8% in 2009 down to 7.3% as September 13. From May 6 to September 13, the Treasury sold 110 million shares for $3.82 billion. It says that it still holds 101 million shares in GM. The Treasury has promised to sell all of its shares in GM by March 2014.

It does not appear that US taxpayers will recoup their entire investment from bailing out GM. The Treasury paid $49.5 billion for 60.8% of GM stock in 2009, and as of September, the stock that it sold had netted $35.4 billion. As of GM’s closing stock price on September 18, the Treasury’s remaining stock is worth about $3.7 billion.

"We remain on track to complete our exit from GM by early next year at a cost far less than originally projected," said Timothy Massad, Treasury Assistant Secretary.

The Treasury says that the reason for the bailout was not as an investment but to save jobs.

Even after the US Treasury sells its stock, the Canadian government, which also bailed out GM, will continue to hold some stock. It has decided to sell off its stake more slowly than the United States. 

Source: Automotive News