U.S. Treasury Plans to Sell Remaining GM Shares
The U.S. Treasury Department has announced its plan to sell another portion of its stock in General Motors Co. that it acquired during the auto bailout. Thanks to a registration statement from GM, its stocks are now easier for the Treasury to sell. This will bring GM closer to eliminating its stigma of government ownership.
In December, the Treasury announced it would sell all of its stock in the company within the next 12 to 15 months, though no specific dates have been given. “We are pleased with the process to date and will continue exiting this investment in accordance with our previously announced plan and timetable, and in a manner that maximizes returns for taxpayers,” said Tim Massad, Treasury assistant secretary for financial stability, in a recent statement.
The U.S. government had recovered $30.4 billion of the $49.5 billion it used to bail out GM under the Troubled Asset Relief Program by the end of March, but it is unlikely that taxpayers will be completely repaid for the TARP bailout. Executives at GM claim that keeping this issue in the past will improve the company’s image and boost sales.
Source: Automotive News
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