Treasury moves to sell government stake in GM
General Motors headquarters in Detroit / Stan Honda/AFP/Getty Images
NEW YORK The U.S. Treasury Department says it has come up with a plan on how it will sell the remaining 300.1 million shares of stock the government owns in General Motors (GM). The process is expected to bring an end to nearly four years of partial nationalization of the American automaker.
- Government sale of GM will cost taxpayers
- General Motors to buy Ally Financial assets for $4.25B
- General Motors to buy back 200 million government shares
Treasury said in a statement on Friday that subject to market conditions, it intends to fully exit the government's remaining investment in the GM over the next 12 to 15 months.
"Treasury's sale of its GM common stock is part of its continuing efforts to wind down the Troubled Asset Relief Program (TARP)," said Treasury. "To date, Treasury has already recovered nearly 93 percent ($387 billion) of the funds disbursed through TARP ($418 billion)."
Even with a successful sale of the last of the government's GM stock, taxpayers will likely lose billions on their $49.5 billion bailout of the automaker in 2009.
The banks will get one cent for every share they sell for a fee of up to $3 million.
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