Chevy Volt from General MotorsGeneral Motors (GM) has repurchased $2.1 billion in preferred stock from the federal government, the Treasury Department said Wednesday, further reducing the amount the automaker owes taxpayers following last year's bailout. With the purchase, the federal government has sold all of its preferred-stock holdings issued under the Troubled Asset Relief Program (TARP), Treasury said in a statement.

The stock purchase brings to $23.1 billion the amount the automaker has repaid Treasury as part of the government-backed $49.5 billion bailout last year. The repaid amount includes $13.5 billion Washington netted following GM's initial public offering of stock last month, Treasury said. GM has already repaid $6.7 billion in debt, and Treasury has also collected $800 million in interest and dividends.

In October, Treasury accepted an offer to repurchase the 84 million preferred shares it gained as part of the TARP bailout. GM has said it expects to record a $700 million charge against its fourth-quarter net income to account for the difference between the purchase price and the recorded value of the preferred shares, Reuters reported.

The latest transaction further reduces the government's stake in GM to about 33%, or about 500 million shares of common stock, down from the 61.5% that Treasury held prior to GM's IPO.

Of the $389 billion Treasury doled out in TARP funds, the agency has received back $266.5 billion in the form of repayments and income from dividends, interest and the sale of other securities, it said. GM shares ended Wednesday's trading day down about 0.8%, or 28 cents, to $33.61 a share.

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gyugv

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December 16 2010 at 7:45 AM Report abuse rate up rate down Reply
Robert & Lisa

Reward the producers and you get more producers, raising the average worker's standard of living. Reward the non-producers and you get more non-production, lowering the average worker's standard of living. Democrats, could it be any easier to understand?

December 16 2010 at 3:26 AM Report abuse +1 rate up rate down Reply
Robert & Lisa

Dems, why does an evil, corrupt, rich man like George Soros back Obama and the corrupt Demoncrats? Their socialist agenda will leave us like Mexico, with the average worker making just enough barely get by, yet the few wealthy ruling people living in total luxury at whose expense? Mexico is the largest producer of silver in the world and one of the largest producers of oil, yet the average worker there makes less than 6 dollars a day. Maybe, you are being deceived by the very ones who are pointing at the conservatives? THINK!!!

December 16 2010 at 3:12 AM Report abuse +1 rate up rate down Reply
Fltz24

300,000 Jobs at stake and people have the nerve to drive oriental cars down to wal mart. Interestingly, union auto workers in Japan make more than their US counterparts. With the cost of shipping it was cheaper to hire non union no pension rats in the south to assemble cars. Drive down wages and let your kids' teeth rot you scabs !

December 15 2010 at 10:15 PM Report abuse -3 rate up rate down Reply
1 reply to Fltz24's comment
Robert & Lisa

Hey if we can't or won't produce products that are better and less expensive than others do, we deserve to go out of business. Our government is overspending saddling us producers with too much overhead causing us to not be able to compete. Keep on voting those Obama's and the Demoncrat corrupt thugs in office who are backed by evil super rich George Soros's and see what they do for you.

December 16 2010 at 3:04 AM Report abuse +1 rate up rate down Reply
wfreeberg

doesn't tke much for the doom and gloom folks to reflect. can you imagine the life they must lead? hopefully they don't reproduce.

December 15 2010 at 9:01 PM Report abuse -1 rate up rate down Reply
1 reply to wfreeberg's comment
Robert & Lisa

Since Obama and corrupt Demoncrat cronies, backed by evil, super rich men like George Soros, have been in office the last four years, doom and gloom is our new reality. Why do the evil, super rich back the socialist Demoncrats? Deception?

December 16 2010 at 3:21 AM Report abuse +1 rate up rate down Reply
dnoonan12

GM also announced sveral months back that they paid off the money they borrowed ahead of schedule. Why should I believe you now? Oh, maybe they "mis-spoke".

December 15 2010 at 8:02 PM Report abuse -1 rate up rate down Reply
kellyplating

Geeee, Their making so much money they are offering buyouts again.
Remember what happened the last time?

December 15 2010 at 5:53 PM Report abuse -1 rate up rate down Reply
wahoofishing2

OH boy Barry will get those new golf clubs for his next vacation in Hawaii. Make sure you don't put it towards the deficit what ever you do.

December 15 2010 at 5:53 PM Report abuse rate up rate down Reply
marine1942

It is all paper, no money changed hands. Another con game

December 15 2010 at 5:39 PM Report abuse +2 rate up rate down Reply
1 reply to marine1942's comment
jpierce67

get over it

December 15 2010 at 6:49 PM Report abuse +1 rate up rate down Reply