U.S. sells nearly 20 percent of remaining GM shares
Source: Detroit News
The U.S. Treasury sold nearly 20 percent of its remaining shares in General Motors Co. in the first three months of the year, the Detroit automaker disclosed Thursday.
The Treasury, which initially held 60.8 percent of GM as part of the U.S. $49.5 billion bailout, now owns just 16.4 percent, or 241.7 million shares. In December, the Treasury sold GM 200 million shares of its stake for $5.5 billion to reduce its stake to 300 million shares.
In total, Treasury has recouped $30.4 billion. At current trading prices, Treasury would lose about $11.5 billion on its GM bailout.
GM disclosed that its second biggest holder is Brock Fiduciary Services LLC, with a 14 percent stake, followed by the Canadian and Ontario governments, which hold a 9.5 percent stake as part of the Canadian government's $10 billion GM bailout.
Read more: http://www.detroitnews.com/article/20130425/AUTO0103/304250457/U-S-sells-nearly-20-percent-remaining-GM-shares?odyssey=mod|newswell|text|FRONTPAGE|s
darkangel218
(13,985 posts)Pterodactyl
(1,687 posts)My preference would be that the government would not own manufacturing facilities or other businesses. It causes all sorts of trouble with free markets.
PATRICK
(12,228 posts)whose governments indeed own a piece of US.
Pterodactyl
(1,687 posts)David__77
(23,484 posts)It would make more sense to maintain a strategic share. But of course it seems we cannot even have a moderately mixed ownership economy like the entire rest of the world. But at a minimum the government could try to earn a profit on its investment and not sell cheap.
davidpdx
(22,000 posts)Not only to recoup more money, but to keep the stability in the company.
Blue_Tires
(55,445 posts)Was there some time-base reason they had to sell now? or could they have held the stock indefinitely?
freshwest
(53,661 posts)I'm surprised the government still owned any shares after all this time. Bailouts are emergency measures and the federal government does not want to own anything that can thrive on its own.