Federal Government Expects to Complete GM Stock Sale by Dec. 31

Tour Of A General Motors Co. Corvette Manufacturing Facility
Luke Sharrett/Bloomberg via Getty ImagesAn employee works on a 2014 Chevrolet Corvette Stingray at GM's assembly plant in Bowling Green, Ky.

DETROIT -- The U.S. government expects to sell the last of its stake in General Motors by the end of the year, bringing an end to a sad chapter in the company's storied history.

The Treasury Department, in a statement issued Thursday, said it still owns 31.1 million shares of the auto giant, less than 2 percent. It plans to sell the shares by Dec. 31, as long as the price holds up.

The government received 912 million shares in exchange for a $49.5 billion bailout during the financial crisis in 2008 and 2009. So far it has recovered $38.4 billion of the money, but selling the remaining shares at Wednesday's $37.69 closing price gets the government $1.17 billion, leaving taxpayers short by roughly $10 billion.

The government says the bailout was needed five years ago to save the American auto industry and more than a million jobs.
It never expected to get all of the money back.

"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," Deputy Assistant Treasury Secretary Tim Bowler said in the statement.

Taxpayers' initially got a 61 percent stake in GM (GM) in exchange for the bailout. Treasury gradually has sold off its stake since a November 2010 initial public offering.

Shares of GM rose $1.22, or 3.2 percent, to $38.91 in premarket trading Thursday. That's close to GM's one-year high of $39.18.

GM said that work to transform the company 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."

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I hope we taxpayers get our money back. I'll believe it when I see it.

November 21 2013 at 7:50 PM Report abuse rate up rate down Reply

UAW got the gold mine, taxpayers got the shaft.

November 21 2013 at 1:48 PM Report abuse +2 rate up rate down Reply

Actually, had the goons not confiscated the fruits of citizens labor as a pay-off to their union slug supporters, the damage to the country caused by this theft could have been avoided.

For one, the production of automobiles is a function of market demand, not a function of the existence of Government Motors. In fact, over the past century, literally dozens of US automakers have ceased to exist, while overall auto production has consistently risen. Had the mouth-breathers refrained from stealing citizens resources, the production required to satisfy market demand for automobiles would have merely shifted to an alternative supplier, who would have required more production capacity and labor to fulfill the increased demand for their product.

Moreover, the $49.5 billion payoff to the union slugs equates to a $49.5 billion reduction in saving and investment that the victims of the goons theft would have undertaken absent this attack. And the $49.5 billion that the victims would have spent or invested would have produced additional economic growth and job creation that were forefeited so the knuckle-draggers could pay off the union slugs.

Lastly, rewarding inefficient producers serves to penalize efficient producers, reducing overall economic efficiency. Imagine a world where goons exploited the intellectually defenseless by convincing these dumbest 1%ers it would be a brilliant idea to identify the least efficient producer in every industry. And upon identification of these inefficient producers, the goons would confiscate all of the dumb ones resources to provide a reward for the inneficient.

November 21 2013 at 12:10 PM Report abuse +4 rate up rate down Reply
1 reply to dweeeb.buster's comment

Trying to explain market forces to the dopey progressives..funny stuff. Their only regret is thst we don't nationalize all of our manufacturing and industry...banking, education, health care, the press/media.

November 21 2013 at 4:50 PM Report abuse +1 rate up rate down Reply